Strength Seen in YPF Sociedad Anonima (YPF): Can Its 8.2% Jump Turn into More Strength?
YPF Sociedad Anonima (YPF) shares soared 8.2% in the last trading session to close at $14.55. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 23.6% gain over the past four weeks.
With three wholly-owned refineries with a combined capacity of 328.1 Kilobarrel/day, YPF Sociedad Anonima accounts for more than 50% of Argentina's refining capacity. The commodity pricing outlook is favorable for the upstream operations of the integrated energy major. As a result, YPF Sociedad Anonima will benefit because it has a robust portfolio of upstream and downstream projects.
This company is expected to post quarterly earnings of $1.32 per share in its upcoming report, which represents a year-over-year change of -34.3%. Revenues are expected to be $4.66 billion, down 4.1% 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 YPF Sociedad Anonima, 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 YPF going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
YPF Sociedad Anonima is a member of the Zacks Oil and Gas - Integrated - International industry. One other stock in the same industry, Exxon Mobil (XOM), finished the last trading session 0.7% lower at $105.13. XOM has returned 0.1% over the past month.
Exxon's consensus EPS estimate for the upcoming report has changed -4.5% over the past month to $2.26. Compared to the company's year-ago EPS, this represents a change of -45.4%. Exxon currently boasts a Zacks Rank of #3 (Hold).
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