Crestwood Equity Partners LP (CEQP) Stock Jumps 5%: Will It Continue to Soar?

Crestwood Equity Partners LP (CEQP) shares soared 5% in the last trading session to close at $26.05. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 15.1% loss over the past four weeks.

With Russia’s invasion of Ukraine limiting global energy supplies, higher commodity prices are driving inflation and decelerating the economic recovery. However, Crestwood Partners is least exposed to the commodity price fluctuations as the partnership generates stable fee-based revenues from diverse midstream energy assets via long-term contracts. The partnership’s ability to pass through costs positions it for a solid long-term future.

This company is expected to post quarterly earnings of $0.22 per share in its upcoming report, which represents a year-over-year change of +144.9%. Revenues are expected to be $1.42 billion, up 52.3% 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 Crestwood Equity Partners LP, the consensus EPS estimate for the quarter has been revised 9.6% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on CEQP 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 >>>>

Crestwood Equity Partners LP is a member of the Zacks Oil and Gas - Production Pipeline - MLB industry. One other stock in the same industry, Oneok Inc. (OKE), finished the last trading session 4% higher at $55.54. OKE has returned -16% over the past month.

For Oneok , the consensus EPS estimate for the upcoming report has changed -0.7% over the past month to $0.94. This represents a change of +22.1% from what the company reported a year ago. Oneok currently has a Zacks Rank of #3 (Hold).

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