Knot Offshore (KNOP) shares ended the last trading session 9.7% higher at $9.89. 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 3.2% gain over the past four weeks.
The company's shares moved north following a takeover offer from Knutsen NYK Offshore Tankers AS. Knutsen NYK Offshore Tankers AS, through a wholly owned subsidiary, aims to acquire all publicly held common units of KNOT Offshore for $10 in cash per common unit.
This tanker company that serves the energy industry is expected to post quarterly earnings of $0.13 per share in its upcoming report, which represents a year-over-year change of +218.2%. Revenues are expected to be $86.33 million, up 13.2% 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 Knot Offshore, 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 KNOP 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 >>>>
Knot Offshore is a member of the Zacks Transportation - Shipping industry. One other stock in the same industry, Okeanis Eco Tankers Corp. (ECO), finished the last trading session 3.4% lower at $34.37. ECO has returned 20.8% over the past month.
Okeanis Eco Tankers Corp.'s consensus EPS estimate for the upcoming report has changed -39.2% over the past month to $0.29. Compared to the company's year-ago EPS, this represents a change of -35.6%. Okeanis Eco Tankers Corp. currently boasts a Zacks Rank of #4 (Sell).
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KNOT Offshore Partners LP (KNOP): Free Stock Analysis Report Okeanis Eco Tankers Corp. (ECO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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