HighPeak Energy (HPK) Moves 7.4% Higher: Will This Strength Last?

HighPeak Energy, Inc. (HPK) shares rallied 7.4% in the last trading session to close at $9.4. 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 9.9% loss over the past four weeks.

HPK surged on July 24, likely driven by a favorable shift in market sentiment. The rally was primarily fueled by broadly positive sentiment across the energy sector, spurred by renewed optimism surrounding crude oil prices. As oil prices strengthened—supported by robust energy demand—the outlook for drilling activity improved, directly benefiting exploration and production companies like HighPeak Energy. The Fort Worth, TX-based oil and gas exploration and production company holds substantial productive capacity in the lucrative Midland Basin of West Texas. This supportive market backdrop likely attracted increased investor interest and contributed to the stock’s notable appreciation for the day.

This company is expected to post quarterly earnings of $0.12 per share in its upcoming report, which represents a year-over-year change of -57.1%. Revenues are expected to be $211.58 million, down 23.1% 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 HighPeak Energy, 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 HPK 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 >>>>

HighPeak Energy belongs to the Zacks Oil and Gas - Exploration and Production - United States industry. Another stock from the same industry, Gulfport Energy (GPOR), closed the last trading session 2.6% higher at $173.35. Over the past month, GPOR has returned -16.3%.

For Gulfport, the consensus EPS estimate for the upcoming report has changed -7.5% over the past month to $5.3. This represents a change of +82.1% from what the company reported a year ago. Gulfport currently has a Zacks Rank of #3 (Hold).

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This article originally published on Zacks Investment Research (zacks.com).

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