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Prairie Operating Co. (PROP) Soars 6.3%: Is Further Upside Left in the Stock?

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Prairie Operating Co. (PROP - Free Report) shares ended the last trading session 6.3% higher at $5.70. 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 28.2% loss over the past four weeks.

The surge can be attributed to a favorable commodity price environment and Prairie’s strong presence in the D-J Basin of the United States. The company owns 30,000 net acres in the D-J Basin. Recently, it completed a previously announced acquisition in the region from Bayswater Exploration and Production. The acquisition adds 24,000 net acres in the Weld County, complimenting Prairie’s existing acreage within the D-J Basin. This acquisition enhances Prairie’s existing acreage, expands its resource base, and increases its production potential. Notably, it increases PROP’s net production by approximately 25,700 barrels of oil equivalent per day. Additionally, the acquisition aligns with the company’s low-cost operating strategy. Prairie’s continuous expansion in the D-J Basin, combined with the favorable commodity price environment, has been a significant driver of revenue growth.

This company is expected to post quarterly loss of $0.12 per share in its upcoming report, which represents a year-over-year change of +83.1%. Revenues are expected to be $12.02 million, up 1220.9% 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 Prairie Operating Co., 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 PROP going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Prairie Operating Co. belongs to the Zacks Oil and Gas - Integrated - United States industry. Another stock from the same industry, Hess (HES - Free Report) , closed the last trading session 0.9% lower at $159.07. Over the past month, HES has returned 10.4%.

For Hess, the consensus EPS estimate for the upcoming report has changed -1.3% over the past month to $1.95. This represents a change of -38.3% from what the company reported a year ago. Hess currently has a Zacks Rank of #3 (Hold).


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