Riley Exploration Permian (REPX) Surges 8.6%: Is This an Indication of Further Gains?

Riley Exploration Permian, Inc. (REPX) shares soared 8.6% in the last trading session to close at $40. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 13.1% gain over the past four weeks.

Riley Exploration Permian surged 8.6% as soaring oil prices boosted investor interest in Permian Basin E&P stocks, amid escalating U.S.-Iran tensions over the Strait of Hormuz. The rally was further supported by strong trading volume, fresh analyst upgrades and higher price targets, along with bullish sentiment driven by the company’s 34% EPS growth and a $100 million share buyback program.

This company is expected to post quarterly earnings of $1.02 per share in its upcoming report, which represents a year-over-year change of -37%. Revenues are expected to be $117.55 million, up 14.7% 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 Riley Exploration Permian, the consensus EPS estimate for the quarter has been revised 14.5% 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 #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Riley Exploration Permian belongs to the Zacks Oil and Gas - Exploration and Production - United States industry. Another stock from the same industry, CNX Resources Corporation. (CNX), closed the last trading session 0.1% higher at $39.74. Over the past month, CNX has returned -2.7%.

CNX Resources' consensus EPS estimate for the upcoming report has changed +0.4% over the past month to $0.87. Compared to the company's year-ago EPS, this represents a change of +11.5%. CNX Resources currently boasts a Zacks Rank of #3 (Hold).

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