Strength Seen in Calumet, Inc. (CLMT): Can Its 5.5% Jump Turn into More Strength?

Calumet, Inc. (CLMT) shares soared 5.5% in the last trading session to close at $23.99. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 16.4% gain over the past four weeks.

The surge can be attributed to Calumet, Inc.’s strong focus on providing cleaner, high-value fuels from both petroleum and renewable feedstocks and continued strong regulatory support for domestic agricultural and biofuels. CLMT operates through three segments including specialty products and solutions, performance brands and Montana/Renewables. The MaxSAF 150 project under Montana/Renewables segment is on track to begin operations in the first half of 2026. With signed agreements and preliminary deal commitments in place, the company has already secured buyers for 100 million gallons of sustainable aviation fuel (SAF). Moreover, the already robust SAF demand is set to strengthen further due to strong regulatory support from the U.S. EPA.

Furthermore, its Specialty Product segment is also benefiting from reduced operational costs due to improvements made in the crude oil supply chain. The company’s MaxSAF 150 expansion project, reduced operating costs, and strong regulatory support for domestic silver and biofuels have been key growth drivers.

This company is expected to post quarterly loss of $0.67 per share in its upcoming report, which represents a year-over-year change of -42.6%. Revenues are expected to be $1.07 billion, up 12.8% 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 Calumet, Inc., the consensus EPS estimate for the quarter has been revised 43.8% 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 CLMT 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 >>>>

Calumet, Inc. is a member of the Zacks Oil and Gas - Integrated - United States industry. One other stock in the same industry, Tidewater (TDW), finished the last trading session 1.1% higher at $65.35. TDW has returned 24.4% over the past month.

Tidewater's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.65. Compared to the company's year-ago EPS, this represents a change of -7.1%. Tidewater currently boasts a Zacks Rank of #3 (Hold).

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

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