Strength Seen in Chord Energy Corporation (CHRD): Can Its 4.0% Jump Turn into More Strength?

Chord Energy Corporation CHRD shares soared 4% in the last trading session to close at $106.42. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0.6% gain over the past four weeks.

The Houston, TX-based oil and gas exploration and production company saw its shares jump after the company increased its senior notes offering to $750 million to help fund its acquisition of valuable oil and gas assets in North Dakota’s Williston Basin from XTO Energy, a subsidiary of ExxonMobil. Investors responded positively to the move, viewing it as a smart expansion that adds high-quality drilling inventory and enhances future earnings potential, while maintaining a conservative balance sheet and leverage profile. The enthusiastic market reaction was further supported by analysts raising price targets, highlighting expectations that the deal will enhance Chord Energy’s scale and shareholder value.

This company is expected to post quarterly earnings of $2.07 per share in its upcoming report, which represents a year-over-year change of -39.1%. Revenues are expected to be $1.33 billion, down 8.2% 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 Chord Energy Corporation, the consensus EPS estimate for the quarter has been revised marginally higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on CHRD 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 >>>>

Chord Energy Corporation belongs to the Zacks Oil and Gas - Exploration and Production - United States industry. Another stock from the same industry, Permian Resources PR, closed the last trading session 1.1% higher at $13.39. Over the past month, PR has returned -0.5%.

For Permian Resources, the consensus EPS estimate for the upcoming report has changed -6.9% over the past month to $0.31. This represents a change of -11.4% from what the company reported a year ago. Permian Resources 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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