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Vista Energy, S.A.B. de C.V. - Sponsored ADR (VIST) Stock Jumps 9.8%: Will It Continue to Soar?

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Vista Energy, S.A.B. de C.V. - Sponsored ADR (VIST - Free Report) shares soared 9.8% in the last two trading sessions to close at $37.34. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 7.4% loss over the past four weeks.

The surge can be attributed to a favourable commodity price environment and Vista’s robust production outlook, driven by its strong presence in the Vaca Muerta shale. Vista Oil & Gas is involved in the exploration and production of oil in Vaca Muerta, a region in Argentina known for its rich oil and gas reserves. In the Vaca Muerta shale, the company has identified untapped premium drilling locations, which are expected to support its future production activities. As the global demand for oil and gas is expected to rise, the company is expected to benefit from increasing production levels. Moreover, with oil prices hovering around $65 per barrel, the company’s operations are expected to remain profitable. The company’s expansion in the Vaca Muerta shale, coupled with the favorable commodity price environment, has been a significant revenue driver.

This company is expected to post quarterly earnings of $1.16 per share in its upcoming report, which represents a year-over-year change of +110.9%. Revenues are expected to be $614.51 million, up 32.9% 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 Vista Energy, S.A.B. de C.V. - Sponsored ADR, the consensus EPS estimate for the quarter has been revised 9.4% 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 VIST 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 >>>>

Vista Energy, S.A.B. de C.V. - Sponsored ADR belongs to the Zacks Oil and Gas - Integrated - International industry. Another stock from the same industry, Golar LNG (GLNG - Free Report) , closed the last trading session 1% higher at $40.34. Over the past month, GLNG has returned -10.04%.

For Golar LNG, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.46. This represents a change of -13.2% from what the company reported a year ago. Golar LNG currently has a Zacks Rank of #3 (Hold).


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