Civitas (CIVI) Soars 6.3%: Is Further Upside Left in the Stock?
Civitas Resources (CIVI) shares rallied 6.3% in the last trading session to close at $64.40. 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 8.8% loss over the past four weeks.
Civitas Resources ended sharply higher on the last trading day, driven by optimism over oil prices spurred by a meeting between Saudi Arabia and Russia that calmed markets amid a potential demand boost from China. With the market rebound allaying fears of lower energy consumption, the upstream energy space is on a solid footing. This has contributed to the strength in Civitas Resources - a pure-play DJ Basin operator.
This oil and gas company is expected to post quarterly earnings of $2.19 per share in its upcoming report, which represents a year-over-year change of -12.8%. Revenues are expected to be $684.8 million, down 16.3% 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 Civitas, the consensus EPS estimate for the quarter has been revised 14.6% 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 CIVI 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 >>>>
Civitas is part of the Zacks Oil and Gas - Exploration and Production - United States industry. Viper Energy Partners (VNOM), another stock in the same industry, closed the last trading session 1.7% higher at $26.86. VNOM has returned -16.5% in the past month.
Viper Energy's consensus EPS estimate for the upcoming report has changed -25% over the past month to $0.28. Compared to the company's year-ago EPS, this represents a change of +21.7%. Viper Energy currently boasts a Zacks Rank of #3 (Hold).
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Civitas Resources, Inc. (CIVI) : Free Stock Analysis Report
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