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ChampionX (CHX) Surges 12.6%: Is This an Indication of Further Gains?

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ChampionX (CHX - Free Report) shares ended the last trading session 12.6% higher at $25.35. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 21.1% loss over the past four weeks.

Following President Trump's announcement to suspend U.S. tariffs on most countries for 90 days, ChampionX  shares soared, reflecting renewed investor optimism.

This oil and gas drilling technology company is expected to post quarterly earnings of $0.41 per share in its upcoming report, which represents a year-over-year change of -18%. Revenues are expected to be $869 million, down 5.8% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For ChampionX, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on CHX going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

ChampionX is part of the Zacks Engineering - R and D Services industry. Aecom Technology (ACM - Free Report) , another stock in the same industry, closed the last trading session 9% higher at $94.99. ACM has returned -7.6% in the past month.

For Aecom, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.15. This represents a change of +10.6% from what the company reported a year ago. Aecom currently has a Zacks Rank of #3 (Hold).


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