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Texas Pacific (TPL) Soars 8.5%: Is Further Upside Left in the Stock?
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Texas Pacific (TPL - Free Report) shares ended the last trading session 8.5% higher at $409.97. 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 28.6% loss over the past four weeks.
As a royalty owner and land manager rather than an operator, Texas Pacific Land enjoys a relatively low operational-cost model that leads to significant profitability.
The company is diversifying beyond oil by leasing land to data center developers, capitalizing on the massive infrastructure and power needs in West Texas, which also increases demand for natural gas.
This landowner is expected to post quarterly earnings of $2.03 per share in its upcoming report, which represents a year-over-year change of +16%. Revenues are expected to be $242 million, up 23.5% 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 Texas Pacific, the consensus EPS estimate for the quarter has been revised 25.8% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on TPL going forward to see if this recent jump can turn into more strength down the road.
Texas Pacific is part of the Zacks Alternative Energy - Other industry. Expand Energy (EXE - Free Report) , another stock in the same industry, closed the last trading session 0.5% lower at $98.99. EXE has returned -7.7% in the past month.
For Expand Energy, the consensus EPS estimate for the upcoming report has changed -5% over the past month to $3.89. This represents a change of +92.6% from what the company reported a year ago. Expand Energy currently has a Zacks Rank of #3 (Hold).
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Texas Pacific (TPL) Soars 8.5%: Is Further Upside Left in the Stock?
Texas Pacific (TPL - Free Report) shares ended the last trading session 8.5% higher at $409.97. 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 28.6% loss over the past four weeks.
As a royalty owner and land manager rather than an operator, Texas Pacific Land enjoys a relatively low operational-cost model that leads to significant profitability.
The company is diversifying beyond oil by leasing land to data center developers, capitalizing on the massive infrastructure and power needs in West Texas, which also increases demand for natural gas.
This landowner is expected to post quarterly earnings of $2.03 per share in its upcoming report, which represents a year-over-year change of +16%. Revenues are expected to be $242 million, up 23.5% 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 Texas Pacific, the consensus EPS estimate for the quarter has been revised 25.8% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on TPL 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 >>>>
Texas Pacific is part of the Zacks Alternative Energy - Other industry. Expand Energy (EXE - Free Report) , another stock in the same industry, closed the last trading session 0.5% lower at $98.99. EXE has returned -7.7% in the past month.
For Expand Energy, the consensus EPS estimate for the upcoming report has changed -5% over the past month to $3.89. This represents a change of +92.6% from what the company reported a year ago. Expand Energy currently has a Zacks Rank of #3 (Hold).