Comstock Resources (CRK – Free Report) shares ended the last trading session 10.7% higher at $18.92. 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 9.8% gain over the past four weeks.
Comstock shares surged sharply yesterday, fueled by optimism over rising natural gas prices driven by strong demand expectations amid forecasts of cold weather. The fuel’s biggest percentage gain in nearly three years, reaching close to $4 per MMBtu, is likely to boost drilling activity and contributed to the strength in Comstock Resources, a natural gas operator in the Haynesville Shale region of northwest Louisiana and East Texas.
This oil and gas company is expected to post quarterly earnings of $0.01 per share in its upcoming report, which represents a year-over-year change of -90%. Revenues are expected to be $372.73 million, down 9.2% from 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 Comstock, the consensus EPS estimate for the quarter has been revised 20% 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 CRK 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 >>>>
Comstock is a member of the Zacks Oil and Gas – Exploration and Production – United States industry. One other stock in the same industry, Magnolia Oil & Gas Corp (MGY – Free Report) , finished the last trading session 1.2% higher at $23.25. MGY has returned -17.2% over the past month.
Magnolia Oil & Gas Corp’s consensus EPS estimate for the upcoming report has changed +1.5% over the past month to $0.47. Compared to the company’s year-ago EPS, this represents a change of -6%. Magnolia Oil & Gas Corp currently boasts a Zacks Rank of #3 (Hold).
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