Viper Energy Partners (VNOM Quick QuoteVNOM - Free Report) shares ended the last trading session 6.4% higher at $17.96. 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 2.4% gain over the past four weeks.

Viper Energy extended its rally for the fourth straight day, driven by optimism over recovering crude prices and rising demand for the commodity on the back of successful deployment of coronavirus vaccines. The improving oil prices can bring higher royalty income from its mineral interests in the Eagle Ford and Permian Basin. Moreover, it received an increased price target from financial service provider Goldman Sachs.

Price and Consensus

This oil and gas company is expected to post quarterly earnings of $0.06 per share in its upcoming report, which represents a year-over-year change of -71.4%. Revenues are expected to be $72.46 million, down 7.9% 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 Viper Energy, the consensus EPS estimate for the quarter has been revised 4.9% 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 VNOM 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 >>>>