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Calumet Specialty Products Partners, L.P. (CLMT) Stock Jumps 5.5%: Will It Continue to Soar?

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Calumet Specialty Products Partners, L.P. (CLMT - Free Report) shares rallied 5.5% in the last trading session to close at $19.10. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 36.6% gain over the past four weeks.

Shares of Calumet Specialty Products went up for the second straight day. The rally on the last day could be due to continuing high energy prices spurred by geopolitical disorder, energy supply issues, and an improving demand picture. The steady high crude prices of around $90 a barrel and robust product demand has lifted the fuel refining space and contributed to the strength of Calumet Specialty Products Partners, a leading independent producer of high-quality, specialty hydrocarbon products in North America.

This company is expected to post quarterly earnings of $0.46 per share in its upcoming report, which represents a year-over-year change of -28.1%. Revenues are expected to be $1.08 billion, up 23.2% 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 Specialty Products Partners, L.P., the consensus EPS estimate for the quarter has been revised 666.7% 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 Specialty Products Partners, L.P. belongs to the Zacks Oil and Gas - Refining and Marketing - Master Limited Partnerships industry. Another stock from the same industry, Targa Resources, Inc. (TRGP - Free Report) , closed the last trading session 0.9% higher at $67.31. Over the past month, TRGP has returned 14.6%.

Targa Resources, Inc.'s consensus EPS estimate for the upcoming report has changed -7.8% over the past month to $1.17. Compared to the company's year-ago EPS, this represents a change of +77.3%. Targa Resources, Inc. currently boasts a Zacks Rank of #3 (Hold).


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