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Strength Seen in Riley Exploration Permian, Inc. (REPX): Can Its 18.2% Jump Turn into More Strength?

Riley Exploration Permian, Inc. (REPX) shares soared 18.2% in the last trading session to close at $34.96. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0.7% gain over the past four weeks.

Riley Exploration Permian stock extended its rally for the fourth straight day, driven by optimism over oil prices spurred by the potential demand boost from the easing of coronavirus restrictions in China. The recent strength in crude prices (at above $75 a barrel) and robust demand for energy has lifted the oil and gas exploration and production space and contributed to the share price movement in the company, which is focused on the Permian basin.

This company is expected to post quarterly earnings of $1.38 per share in its upcoming report, which represents a year-over-year change of +94.4%. Revenues are expected to be $64.42 million, up 12.5% 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 Riley Exploration Permian, Inc., 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 REPX 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 >>>>

Riley Exploration Permian, Inc. is a member of the Zacks Oil and Gas - Exploration and Production - United States industry. One other stock in the same industry, Chord Energy Corporation (CHRD), finished the last trading session 0.5% lower at $134.29. CHRD has returned -0.3% over the past month.

For Chord Energy Corporation , the consensus EPS estimate for the upcoming report has changed -5.5% over the past month to $6.11. This represents a change of +43.8% from what the company reported a year ago. Chord Energy Corporation currently has a Zacks Rank of #3 (Hold).

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