APA (APA) shares ended the last trading session 19.1% higher at $16.71. 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 26.9% loss over the past four weeks.
APA Corporation, an American energy company that focuses on the exploration and production of oil and natural gas, saw a significant rise in its stock price. The increase was driven by a broader market rally that followed President Trump's decision to pause "reciprocal" tariff hikes and implement a reduced 10% tariff rate for most countries. This announcement alleviated trade concerns and contributed to higher oil and natural gas prices, which positively impacted energy companies like APA, whose profits are closely tied to oil and natural gas price movements.
This oil and natural gas producer is expected to post quarterly earnings of $0.80 per share in its upcoming report, which represents a year-over-year change of +2.6%. Revenues are expected to be $2.18 billion, up 14.5% 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 APA, the consensus EPS estimate for the quarter has been revised 10.2% 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 APA 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 >>>>
APA is part of the Zacks Oil and Gas - Exploration and Production - United States industry. California Resources Corporation (CRC), another stock in the same industry, closed the last trading session 12.6% higher at $36.47. CRC has returned -24.5% in the past month.
California Resources' consensus EPS estimate for the upcoming report has changed -16.9% over the past month to $0.88. Compared to the company's year-ago EPS, this represents a change of +17.3%. California Resources currently boasts a Zacks Rank of #4 (Sell).
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This article originally published on Zacks Investment Research (zacks.com).
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