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Transportadora De Gas Ord B (TGS) Moves 36.8% Higher: Will This Strength Last?

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Transportadora De Gas Sa Ord B (TGS - Free Report) shares soared 36.8% in the last trading session to close at $30.75. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 2.7% gain over the past four weeks.

Transportadora De Gas Ord B’s shares surged in the latest trading session. The bullishness could be attributed to the company’s resilient business model, which focuses on generating steady, fee-based revenues from its core midstream assets that continue to see strong utilization by customers. Additionally, the partnership’s strong potential to produce robust free cash flows in the future has further boosted investor confidence in the stock.

This company is expected to post quarterly earnings of $0.25 per share in its upcoming report, which represents a year-over-year change of -32.4%. Revenues are expected to be $337.53 million, up 23.9% 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 Transportadora De Gas Ord B, 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 TGS 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 >>>>

Transportadora De Gas Ord B is a member of the Zacks Oil and Gas - Production and Pipelines industry. One other stock in the same industry, MPLX LP (MPLX - Free Report) , finished the last trading session 0.7% higher at $50.82. MPLX has returned -1.6% over the past month.

MPLX LP's consensus EPS estimate for the upcoming report has changed -1.8% over the past month to $1.08. Compared to the company's year-ago EPS, this represents a change of +6.9%. MPLX LP currently boasts a Zacks Rank of #4 (Sell).


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