Strength Seen in Antero Resources (AR): Can Its 5.5% Jump Turn into More Strength?
Antero Resources (AR) shares rallied 5.5% in the last trading session to close at $35.80. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 9.6% loss over the past four weeks.
Antero Resources shares rallied on the last trading day. The bullishness could be attributed to the company joining the S&P MidCap 400 index replacing American investment holding company - Alleghany. Moreover, continued high natural gas prices spurred by geopolitical turmoil and an improving demand picture have contributed to the strength of this independent explorer, primarily engaged in the acquisition and development of natural gas, natural gas liquids and oil resources in the Appalachian Basin.
This oil and natural gas producer is expected to post quarterly earnings of $1.95 per share in its upcoming report, which represents a year-over-year change of +926.3%. Revenues are expected to be $1.99 billion, up 272.3% 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 Antero Resources, the consensus EPS estimate for the quarter has been revised 13.7% 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 AR 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 >>>>
Antero Resources is a member of the Zacks Oil and Gas - Exploration and Production - United States industry. One other stock in the same industry, APA (APA), finished the last trading session 0.7% lower at $39.82. APA has returned -0.9% over the past month.
APA's consensus EPS estimate for the upcoming report has changed -14.2% over the past month to $2.28. Compared to the company's year-ago EPS, this represents a change of +132.7%. APA currently boasts a Zacks Rank of #3 (Hold).
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