Vista Oil & Gas, S.A.B. de C.V. Sponsored ADR (VIST) shares soared 10.6% in the last trading session to close at $47.24. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 15.9% loss over the past four weeks.
The bullishness may be driven by its strong operational performance, solid production growth, and efficient cost management. As one of Argentina’s leading independent oil producers, the company continues to capitalize on favorable industry trends. Investor confidence in its ability to expand within the Vaca Muerta shale play, along with higher oil prices and increased institutional interest, may have further fueled the rally. Additionally, optimism surrounding Argentina's energy sector reforms and potential export opportunities could have been key drivers of its recent stock performance.
This company is expected to post quarterly earnings of $1.05 per share in its upcoming report, which represents a year-over-year change of +114.3%. Revenues are expected to be $501.97 million, up 58.2% 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 Vista Oil & Gas, the consensus EPS estimate for the quarter has been revised 10.3% 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 VIST 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 >>>>
Vista Oil & Gas is a member of the Zacks Oil and Gas - Integrated - International industry. One other stock in the same industry, Eni SpA (E), finished the last trading session 0.3% higher at $29.87. E has returned 2.3% over the past month.
Eni SpA's consensus EPS estimate for the upcoming report has changed +10.5% over the past month to $1. Compared to the company's year-ago EPS, this represents a change of -3.9%. Eni SpA currently boasts a Zacks Rank of #2 (Buy).
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
