LyondellBasell (LYB) shares ended the last trading session 6.8% higher at $52. 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 13.2% gain over the past four weeks.
LYB's rally appears to reflect the recent gains in oil prices amid concerns over supply disruptions due to the civil unrest in Iran, boosting the company’s competitive cost advantage.
This oil refiner and chemical company is expected to post quarterly earnings of $0.13 per share in its upcoming report, which represents a year-over-year change of -82.7%. Revenues are expected to be $6.98 billion, down 26.5% 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 LyondellBasell, the consensus EPS estimate for the quarter has been revised 6.2% 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 LYB 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 >>>>
LyondellBasell belongs to the Zacks Chemical - Diversified industry. Another stock from the same industry, Tronox (TROX), closed the last trading session 3.1% higher at $5.72. Over the past month, TROX has returned 25.9%.
For Tronox, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.34. This represents a change of -1233.3% from what the company reported a year ago. Tronox currently has a Zacks Rank of #5 (Strong Sell).
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LyondellBasell Industries N.V. (LYB): Free Stock Analysis Report Tronox Holdings PLC (TROX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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