Range Resources (RRC) Soars 9.7%: Is Further Upside Left in the Stock?
Range Resources (RRC) shares soared 9.7% in the last trading session to close at $20.18. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 36.1% gain over the past four weeks.
Increased optimism over the accelerated recovery in the exploration and production business following the massive natural gas price improvement primarily drove the stock higher. Being the most capital efficient operator in Appalachia, the company is well positioned to capitalize on the rapidly improving natural gas price. Range Resources has a strong focus on strengthening its balance sheet. For three straight years, the upstream player has lowered its absolute debt. In the upstream business in the United States, the company has the lowest emission intensity.
Price and Consensus
This independent oil and gas company is expected to post quarterly earnings of $0.49 per share in its upcoming report, which represents a year-over-year change of +1080%. Revenues are expected to be $732.37 million, up 144.7% 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 Range Resources, the consensus EPS estimate for the quarter has been revised 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 RRC going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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