Evolution Petroleum (EPM) Stock Jumps 5.9%: Will It Continue to Soar?
Evolution Petroleum (EPM) shares rallied 5.9% in the last trading session to close at $7.19. 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 8.9% loss over the past four weeks.
Evolution Petroleum extended its rally for the third straight day, driven by optimism over rising commodity prices spurred by geopolitical turmoil and an improving demand picture. The steady increase in oil prices to more than $100 a barrel and natural gas surging to $5.50 per MMBtu has lifted the energy space and contributed to the strength in Evolution Petroleum, a small upstream operator with working interests in three oil and gas fields in three different states.
This oil and gas company is expected to post quarterly earnings of $0.21 per share in its upcoming report, which represents a year-over-year change of +425%. Revenues are expected to be $21.37 million, up 179.7% 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 Evolution Petroleum, 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 EPM 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 >>>>
Evolution Petroleum belongs to the Zacks Oil and Gas - Exploration and Production - United States industry. Another stock from the same industry, Civitas Resources (CIVI), closed the last trading session 3.3% higher at $61.70. Over the past month, CIVI has returned 7.2%.
For Bonanza Creek , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.74. This represents a change of +97.7% from what the company reported a year ago. Bonanza Creek currently has a Zacks Rank of #2 (Buy).
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