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Paramount Resources (PRMRF) Soars 5.5%: Is Further Upside Left in the Stock?

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Paramount Resources (PRMRF - Free Report) shares soared 5.5% in the last trading session to close at $15.66. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 1.4% gain over the past four weeks.

A Calgary, Canada-based oil and gas exploration and production company recently saw its share price rise after announcing the sale of a portion of its investment in NuVista Energy Ltd. The transaction unlocked fresh capital and demonstrated a strong commitment to disciplined capital allocation. It was viewed as a strategic move to increase operational flexibility and strengthen the balance sheet—particularly valuable in the current volatile energy market, where maximizing asset value and managing risk are crucial. Investors interpreted the sale as a sign of management’s proactive approach to capital recycling and its dedication to enhancing shareholder value, which helped renew market confidence and drove up the stock price.

 

This oil and natural gas company is expected to post quarterly earnings of $0.11 per share in its upcoming report, which represents a year-over-year change of -76.6%. Revenues are expected to be $92.91 million, down 71.1% 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 Paramount Resources, 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 PRMRF 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 >>>>

Paramount Resources is part of the Zacks Oil and Gas - Exploration and Production - Canadian industry. Baytex Energy (BTE - Free Report) , another stock in the same industry, closed the last trading session 1.3% higher at $2.42. BTE has returned 11.7% in the past month.

For Baytex, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.03. This represents a change of -117.7% from what the company reported a year ago. Baytex currently has a Zacks Rank of #2 (Buy).


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