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Why Ring Energy (REI) Could Be Positioned for a Surge?

Zacks Equity Research

Ring Energy, Inc. (REI), an oil and gas exploration and production company, could be an interesting play for investors. That is because, not only does the stock have decent short-term momentum, but it is seeing solid activity on the earnings estimate revision front as well.  

These positive earnings estimate revisions suggest that analysts are becoming more optimistic on REI’s earnings for the coming quarter and year. In fact, consensus estimates have moved sharply higher for both of these time frames over the past four weeks, suggesting that Ring Energy could be a solid choice for investors.         

Current Quarter Estimates for REI

Though there has been no upward revision in the past 30 days, the trend has been pretty favorable for Ring Energy, with estimates increasing from 2 cents a share 30 days ago, to 3 cents today, a move of 50.0%.     

Current Year Estimates for REI

Meanwhile, Ring Energy’s current year figures are also looking quite promising, with 2 estimates moving higher in the past month against just 1 lower. The consensus estimate trend has also seen a boost for this time frame, increasing significantly from the break-even point level 30 days ago to 42 cents per share today.    

Bottom Line

The stock has also started to move higher lately, adding 8.8% over the past four weeks, suggesting that investors are starting to take note of this impressive story. So investors may definitely want to consider this Zacks Rank #3 (Hold) stock to profit in the near future.

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RING ENERGY INC (REI): Free Stock Analysis Report

Zacks Investment Research