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Strength Seen in Berry Petroleum (BRY): Can Its 14.4% Jump Turn into More Strength?

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Berry Petroleum (BRY) shares ended the last trading session 14.4% higher at $9.78. 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 44.9% gain over the past four weeks.

Berry Corporation saw the fourth consecutive day of price increase since there has been increased optimism over the accelerated recovery in the energy sector following the massive improvement in oil prices. The independent upstream energy player is well-positioned to capitalize on the rapidly improving oil price since it has access to conventional oil reserves located in the western United States. Lower exposure to debt capital compared to composite stocks belonging to the industry is also noteworthy since its relatively conservative balance sheet will help sail through energy business uncertainty. The stock, on Oct 19, witnessed a rise in its price target by KeyBanc analyst Leo Mariani.

This independent upstream energy company is expected to post quarterly earnings of $0.17 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $144.3 million, up 60.8% 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 Berry Petroleum, the consensus EPS estimate for the quarter has been revised 9.1% 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 BRY 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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