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Transportadora De Gas Ord B (TGS) Moves 10.9% Higher: Will This Strength Last?

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Transportadora De Gas Sa Ord B (TGS - Free Report) shares soared 10.9% in the last trading session to close at $18.55. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 36.4% gain over the past four weeks.

The bullishness could be attributed to TGS’s extensive global energy data repository and specialized services such as advanced processing, analytics, and cloud-based solutions. Collaborating with MPM and PETRONAS, TGS, PGS, and SLB embark on a joint multi-client 3D seismic venture in Malaysia's Penyu Basin, spanning 7,800 square kilometers. This initiative aims to uncover exploration opportunities and evaluate carbon storage potential, with acquisition slated for completion by July 2024 and processing by June 2025. TGS’s international presence and diversified business model have been significant drivers of its stock performance. 

This company is expected to post quarterly earnings of $0.24 per share in its upcoming report, which represents a year-over-year change of +20%. Revenues are expected to be $211.09 million, down 12.9% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Transportadora De Gas Ord B, the consensus EPS estimate for the quarter has been revised 10.7% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on TGS going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Transportadora De Gas Ord B belongs to the Zacks Oil and Gas - Production and Pipelines industry. Another stock from the same industry, Kinder Morgan (KMI - Free Report) , closed the last trading session 0.2% higher at $18.46. Over the past month, KMI has returned 3.1%.

For Kinder Morgan, the consensus EPS estimate for the upcoming report has changed -1.5% over the past month to $0.32. This represents a change of +6.7% from what the company reported a year ago. Kinder Morgan currently has a Zacks Rank of #3 (Hold).


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