Green Plains Renewable Energy (GPRE) shares soared 11.7% in the last trading session to close at $19.23. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock’s 16.1% gain over the past four weeks.
GPRE’s shares rallied after UBS reportedly raised its price target to $20 from $12 and lifted its earnings outlook while retaining the Neutral rating.
This ethanol production, marketing and commodities company is expected to post quarterly earnings of $0.78 per share in its upcoming report, which represents a year-over-year change of +290.2%. Revenues are expected to be $528.6 million, down 4.4% 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 Green Plains, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock’s price usually doesn’t keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on GPRE 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 >>>>
Green Plains is a member of the Zacks Chemical – Specialty industry. One other stock in the same industry, Ingevity (NGVT), finished the last trading session 1.8% higher at $76.53. NGVT has returned 2.4% over the past month.
Ingevity’s consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.31. Compared to the company’s year-ago EPS, this represents a change of -5.8%. Ingevity currently boasts a Zacks Rank of #3 (Hold).
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This article originally published on Zacks Investment Research (zacks.com).
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