Strength Seen in Northern Oil and Gas (NOG): Can Its 9.6% Jump Turn into More Strength?
Northern Oil and Gas (NOG) shares soared 9.6% in the last trading session to close at $13.76. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 13.9% gain over the past four weeks.
Northern Oil and Gas stock ended sharply higher Friday, driven by optimism over strong commodity prices. The shares have also been buoyed by an earlier-than-expected pickup in oil demand on the back of successful deployment of COVID-19 vaccines. The recovery in crude prices to more than $60 a barrel has pushed drilling activity higher and contributed to the strength in Northern Oil and Gas, a Williston Basin-focused energy producer. Further, a robust commodity price environment prompted Truist Securities analyst Neal Dingmann to raise the price target on the U.S. upstream firm earlier this month.
Price and Consensus
This independent oil and gas company is expected to post quarterly earnings of $0.61 per share in its upcoming report, which represents a year-over-year change of +22%. Revenues are expected to be $130.2 million, unchanged compared to 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 Northern Oil and Gas, the consensus EPS estimate for the quarter has been revised 10.2% 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 NOG 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 >>>>
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