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Calumet, Inc. (CLMT) Moves 12.5% Higher: Will This Strength Last?

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Calumet, Inc. (CLMT - Free Report) shares ended the last trading session 12.5% higher at $10.11. 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 16.6% loss over the past four weeks.

Calumet Inc.’s shares rallied on the last trading day. The bullishness could be attributed to the company’s diverse portfolio, which includes base oils, specialty oils, waxes, and fuels, has been meeting and exceeding customer expectations. Calumet's strategic focus on delivering high-quality products to key industries such as transportation, industrial, food and agriculture, and personal care has positioned the company for continued growth.

This company is expected to post quarterly loss of $0.28 per share in its upcoming report, which represents a year-over-year change of +54.1%. Revenues are expected to be $967.6 million, down 3.8% 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 Calumet, Inc., the consensus EPS estimate for the quarter has been revised 17.8% 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 CLMT 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 >>>>

Calumet, Inc. is part of the Zacks Oil and Gas - Integrated - United States industry. Cactus, Inc. (WHD - Free Report) , another stock in the same industry, closed the last trading session 11.7% higher at $39.16. WHD has returned -24.6% in the past month.

Cactus' consensus EPS estimate for the upcoming report has changed -3.4% over the past month to $0.67. Compared to the company's year-ago EPS, this represents a change of -10.7%. Cactus currently boasts a Zacks Rank of #4 (Sell).


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