Riley Exploration Permian, Inc. (REPX) Soars 6.8%: Is Further Upside Left in the Stock?

·2-min read

Riley Exploration Permian, Inc. (REPX) shares ended the last trading session 6.8% higher at $37.05. 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 13.4% gain over the past four weeks.

Riley Exploration Permian stock rose for the fifth straight day, driven by optimism over crude prices spurred by easing of the banking crisis and the U.S. Federal Reserve’s signal about an imminent end to interest rate increases. The steady increase in commodity prices to more than $70 a barrel is set to push drilling activity higher and contributed to the strength in Riley Exploration Permian, whose productive capacity is based in the horizontal development of the San Andres formation on the Northwest Shelf of the Permian Basin.

This company is expected to post quarterly earnings of $1.64 per share in its upcoming report, which represents a year-over-year change of +64%. Revenues are expected to be $67.14 million, down 0.2% 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 Riley Exploration Permian, Inc., the consensus EPS estimate for the quarter has been revised 11.2% 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 REPX going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Riley Exploration Permian, Inc. is a member of the Zacks Oil and Gas - Exploration and Production - United States industry. One other stock in the same industry, Cheniere Energy (LNG), finished the last trading session 1.3% higher at $155.49. LNG has returned -2.4% over the past month.

For Cheniere Energy , the consensus EPS estimate for the upcoming report has changed +4.4% over the past month to $5.38. This represents a change of -26.8% from what the company reported a year ago. Cheniere Energy currently has a Zacks Rank of #3 (Hold).

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