Strength Seen in PDC Energy (PDCE): Can Its 10.6% Jump Turn into More Strength?

PDC Energy (PDCE) shares ended the last trading session 10.6% higher at $39.20. 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 44.1% gain over the past four weeks.

PDC Energy extended its rally for the second straight day, driven by recovery in crude prices to more than $64 a barrel from the recently announced OPEC+ supply curbs until April. Also Saudi Arabia announced that it would continue its one million barrels per day voluntary production cut into April.

Price and Consensus

Price Consensus Chart for PDC Energy
Price Consensus Chart for PDC Energy

This independent oil and gas company is expected to post quarterly earnings of $0.64 per share in its upcoming report, which represents a year-over-year change of +165.3%. Revenues are expected to be $375.93 million, down 50.3% 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 PDC Energy, the consensus EPS estimate for the quarter has been revised 4.7% 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 PDCE 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 >>>>


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