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Black Stone Minerals (BSM) Moves 5.7% Higher: Will This Strength Last?

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Black Stone Minerals (BSM) shares rallied 5.7% in the last trading session to close at $14.35. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 9.5% gain over the past four weeks.

Black Stone Minerals continued its surge for the third straight day. The recent rise in oil prices due to fears over Russian crude supply disruptions primarily drove the stock.  The sturdy increase in oil prices to more than $100 a barrel and natural gas surging to around $5.90 per MMBtu has boosted the energy space and contributed to the strength of Black Stone Minerals which is the owner and manager of oil and natural gas mineral interests in the U.S.

This partnership that owns mineral and royalty interests is expected to post quarterly earnings of $0.33 per share in its upcoming report, which represents a year-over-year change of +106.3%. Revenues are expected to be $124.23 million, up 101.8% 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 Black Stone Minerals, the consensus EPS estimate for the quarter has been revised 9% 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 BSM 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 >>>>

Black Stone Minerals belongs to the Zacks Energy and Pipeline - Master Limited Partnerships industry. Another stock from the same industry, Hess Midstream Partners LP (HESM), closed the last trading session 0.5% lower at $30.06. Over the past month, HESM has returned -9.8%.

Hess Midstream Partners LP's consensus EPS estimate for the upcoming report has changed -12.7% over the past month to $0.56. Compared to the company's year-ago EPS, this represents a change of +30.2%. Hess Midstream Partners LP currently boasts a Zacks Rank of #3 (Hold).

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Black Stone Minerals, L.P. (BSM) : Free Stock Analysis Report
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