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Amplify Energy (AMPY) Surges 5.9%: Is This an Indication of Further Gains?

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Amplify Energy (AMPY - Free Report) shares ended the last trading session 5.9% higher at $6.83. 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 11.3% loss over the past four weeks.

Amplify Energy stock rose for the second straight day, driven by optimism over oil prices spurred by Saudi Arabia’s pledge to extend its current 1 million barrel per day production cut through August. The recovery in crude prices to nearly $75 a barrel has lifted the energy space and contributed to the strength in Amplify Energy, an upstream operator in Oklahoma, the Rockies, offshore Southern California, East Texas / North Louisiana, and the Eagle Ford.

This oil and gas company is expected to post quarterly earnings of $0.28 per share in its upcoming report, which represents a year-over-year change of -61.6%. Revenues are expected to be $78.21 million, down 35.8% 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 Amplify Energy, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on AMPY 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 >>>>

Amplify Energy is a member of the Zacks Oil and Gas - Exploration and Production - United States industry. One other stock in the same industry, W&T Offshore (WTI - Free Report) , finished the last trading session 5.4% higher at $3.94. WTI has returned -11% over the past month.

For W&T, the consensus EPS estimate for the upcoming report has changed -23.8% over the past month to $0.05. This represents a change of -96.2% from what the company reported a year ago. W&T currently has a Zacks Rank of #4 (Sell).


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