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UGI (UGI) Stock Jumps 8.2%: Will It Continue to Soar?

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UGI (UGI - Free Report) shares ended the last trading session 8.2% higher at $25.74. 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 2.8% loss over the past four weeks.

Per a media report, Abu Dhabi National Oil’s unit Adnoc Distribution is considering a potential investment in UGI Corp.’s propane distribution unit AmeriGas. Though the news is yet to be confirmed by the companies, shares rallied on market rumours. If the middle east energy company decides to proceed with the deal it will result in fresh investment of several billion dollars at UGI.

UGI continues to make systematic capital investments to address the infrastructural need for various capital projects and for increasing the safety and reliability of natural gas production and storage facilities, plus replacing the aging infrastructure for modernizing the system. The company’s customer additions remained robust, with more than 3,500 new residential and commercial customers added during first-quarter fiscal 2024.

This natural gas and electric utilities operator. Is expected to post quarterly earnings of $1.65 per share in its upcoming report, which represents a year-over-year change of -1.8%. Revenues are expected to be $3.37 billion, up 8.5% 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 UGI, 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 UGI 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 >>>>

UGI is part of the Zacks Utility - Gas Distribution industry. Clean Energy Fuels (CLNE - Free Report) , another stock in the same industry, closed the last trading session 0.9% lower at $2.22. CLNE has returned -12.5% in the past month.

For Clean Energy Fuels, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.03. This represents a change of +57.1% from what the company reported a year ago. Clean Energy Fuels currently has a Zacks Rank of #3 (Hold).


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