Concho Resources, Inc. is an independent oil and natural gas company that could be an interesting play for investors. That is because, not only does the stock have decent short-term momentum, but it is seeing solid activity on the earnings estimate revision front as well.

These positive earnings estimate revisions suggest that analysts are becoming more optimistic on CXO’s earnings for the coming quarter and year. In fact, consensus estimates have moved sharply higher for both of these time frames over the past four weeks, suggesting that Concho Resources could be a solid choice for investors.

Current Quarter Estimates for CXO

In the past 30 days, 10 estimates have gone higher for Concho Resources while 1 has gone lower in the same time period. The trend has been pretty favorable too, with estimates increasing from 2 cents a share 30 days ago, to 16 cents today, making a significant move.

Current Year Estimates for CXO

Meanwhile, Concho Resources’ current year figures are also looking quite promising, with 12 estimates moving higher in the past month, compared to no downward revisions. The consensus estimate trend has also seen a boost for this time frame, increasing from a loss of 38 cents per share 30 days ago to earnings of 14 cents per share today, making a considerable increase.

Bottom Line

The stock has also started to move higher lately, adding 9.2% over the past four weeks, suggesting that investors are starting to take note of this impressive story. So investors may definitely want to consider this Zacks Rank #3 (Hold) stock to profit in the near future.

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