Strength Seen in EOG Resources (EOG): Can Its 8.7% Jump Turn into More Strength?

EOG Resources (EOG) shares soared 8.7% in the last trading session to close at $114.05. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 15.7% loss over the past four weeks.The surge can be attributed to a broader gain on oil prices, which closed almost $3 per barrel higher in the previous trading session. Natural gas prices also rose by almost 10%. The rise in oil prices was part of a broader rally driven by President Donald Trump's decision to implement a 90-day pause on “reciprocal” tariffs for most countries. However, President Trump has decided to maintain a reduced tariff rate of 10%, amid rising U.S-China trade tensions. Being an exploration and production firm, EOG Resources’ financial performance is closely tied to oil and gas prices. EOG Resources boasts a multi-basin asset portfolio and low-breakeven production costs which combined with favourable commodity prices should aid its profitability.This oil and gas company is expected to post quarterly earnings of $2.76 per share in its upcoming report, which represents a year-over-year change of -2.1%. Revenues are expected to be $5.88 billion, down 4% 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 EOG Resources, the consensus EPS estimate for the quarter has been revised 6% 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 EOG 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 >>>>EOG Resources is part of the Zacks Oil and Gas - Exploration and Production - United States industry. APA (APA), another stock in the same industry, closed the last trading session 19.1% higher at $16.71. APA has returned -26.9% in the past month.For APA, the consensus EPS estimate for the upcoming report has changed -10.2% over the past month to $0.80. This represents a change of +2.6% from what the company reported a year ago. APA currently has a Zacks Rank of #3 (Hold).7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report EOG Resources, Inc. (EOG): Free Stock Analysis Report APA Corporation (APA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks