California Resources Corporation (CRC) shares rallied 6.7% in the last trading session to close at $51.26. 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 4.3% gain over the past four weeks.
A key driver behind the surge in CRC’s share price on Friday was a significant shift in government policy. California Governor Gavin Newsom proposed easing permitting requirements for oil drilling across the state, signaling a more favorable regulatory environment for in-state energy companies. This policy adjustment boosted investor confidence that CRC would face fewer operational hurdles, potentially increasing future drilling opportunities and profitability. As the news broke, market participants responded positively, sending shares of the oil and gas exploration and production company higher.
This company is expected to post quarterly earnings of $0.83 per share in its upcoming report, which represents a year-over-year change of +38.3%. Revenues are expected to be $826.49 million, up 60.8% 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 California Resources, the consensus EPS estimate for the quarter has been revised 5.6% 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 CRC 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 >>>>
California Resources belongs to the Zacks Oil and Gas - Exploration and Production - United States industry. Another stock from the same industry, Mach Natural Resources LP (MNR), closed the last trading session 0.1% lower at $14.7. Over the past month, MNR has returned -4.2%.
For Mach Natural Resources LP, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.53. This represents a change of +26.2% from what the company reported a year ago. Mach Natural Resources LP currently has a Zacks Rank of #5 (Strong Sell).
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California Resources Corporation (CRC): Free Stock Analysis Report Mach Natural Resources LP (MNR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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