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Geopark (GPRK) Soars 5.8%: Is Further Upside Left in the Stock?

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Geopark (GPRK - Free Report) shares rallied 5.8% in the last trading session to close at $6.57. 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 6.6% loss over the past four weeks.

A surge in GeoPark Limited’s stock price can be attributed to the recent gain in crude prices and the company’s robust financial fundamentals. The recovery in Brent crude prices to around $70 a barrel has pushed drilling activity higher and contributed to the strength in GeoPark Limited - a Latin America-focused energy producer. The stock is also viewed as a strong energy play supported by a 9.5% dividend yield, and ongoing share buybacks. Additionally, GeoPark has secured significant price protection by hedging 87% of its 2025 production against Brent oil prices, which reduces risk in volatile commodity markets.

This oil and gas company is expected to post quarterly earnings of $0.31 per share in its upcoming report, which represents a year-over-year change of -35.4%. Revenues are expected to be $114.06 million, down 28.5% 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 Geopark, the consensus EPS estimate for the quarter has been revised 138.5% 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 GPRK going forward to see if this recent jump can turn into more strength down the road.

 

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Geopark belongs to the Zacks Oil and Gas - Exploration and Production - United States industry. Another stock from the same industry, Magnolia Oil & Gas Corp (MGY - Free Report) , closed the last trading session 4% higher at $24.61. Over the past month, MGY has returned 1.8%.

For Magnolia Oil & Gas Corp, the consensus EPS estimate for the upcoming report has changed -4.7% over the past month to $0.41. This represents a change of -21.2% from what the company reported a year ago. Magnolia Oil & Gas Corp currently has a Zacks Rank of #3 (Hold).


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