W&T Offshore (WTI) shares soared 5.1% in the last trading session to close at $5.11. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock’s 13.6% gain over the past four weeks.
Increased optimism over the accelerated recovery in the energy sector following the massive oil price improvement primarily drove the stock. The price of oil is trading at more than $105-per barrel mark, reflecting a massive improvement in the past year. This is beneficial for W&T Offshore since the company is a leading oil producer with footprint in offshore resources in the Gulf of Mexico.
This independent oil and gas company is expected to post quarterly earnings of $0.12 per share in its upcoming report, which represents a year-over-year change of +340%. Revenues are expected to be $146.96 million, up 55.1% 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 W&T, 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 WTI 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 >>>>
W&T is a member of the Zacks Oil and Gas – Exploration and Production – United States industry. One other stock in the same industry, Earthstone Energy (ESTE), finished the last trading session 2.6% higher at $13.34. ESTE has returned -4.8% over the past month.
Earthstone Energy’s consensus EPS estimate for the upcoming report has changed -19.1% over the past month to $0.39. Compared to the company’s year-ago EPS, this represents a change of +333.3%. Earthstone Energy currently boasts a Zacks Rank of #3 (Hold).
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 3 crypto-related stocks now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report