Calumet, Inc. (CLMT) was a big mover last session on higher-than-average trading volume. The latest trend in earnings estimate revisions might help the stock co
Calumet, Inc. (CLMT) shares soared 12% in the last two trading sessions to close at $35.90. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 33.2% 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. Notably, the company is moving forward with the MaxSAF 150 expansion project under Montana/Renewables segment, aiming for an annual production capacity of 120- 150 million gallons of sustainable aviation fuel (SAF) at a fraction of the initial cost estimate. Additionally, the company has already signed agreements for nearly 100 million gallons of SAF at a premium, which underscores the strong demand for SAF. Furthermore, the company is also prioritizing structural cost reductions across all segments that can improve bottom-line profitability under compressed margin environments.
This company is expected to post quarterly loss of $0.61 per share in its upcoming report, which represents a year-over-year change of +40.8%. Revenues are expected to be $997.25 million, up 0.3% 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 Calumet, Inc., the consensus EPS estimate for the quarter has been revised 18.7% 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 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 part of the Zacks Oil and Gas - Integrated - United States industry. ConocoPhillips $COP (COP), another stock in the same industry, closed the last trading session 0.7% lower at $132. COP has returned 16.3% in the past month.
ConocoPhillips' consensus EPS estimate for the upcoming report has changed +33.9% over the past month to $1.62. Compared to the company's year-ago EPS, this represents a change of -22.5%. ConocoPhillips currently boasts a Zacks Rank of #3 (Hold).
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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