BKV (BKV) Soars 7.4%: Is Further Upside Left in the Stock?
BKV (BKV) shares soared 7.4% in the last trading session to close at $23.68. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 17.6% loss over the past four weeks.
BKV shares rose after the company announced the ~1,200-MW Texas power project equipment deal backed by an investment-grade hyperscaler, signaling a potentially large new growth opportunity with reduced near-term funding risk.
The agreement covers roughly 90% of BKV’s payments through March 2027, while giving the company an opportunity to expand its power-generation platform and serve rising electricity demand from hyperscalers.
This natural gas producer is expected to post quarterly earnings of $0.39 per share in its upcoming report, which represents a year-over-year change of -22%. Revenues are expected to be $475.6 million, up 71.2% 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 BKV, the consensus EPS estimate for the quarter has been revised 3.8% 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 BKV 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 >>>>
BKV is a member of the Zacks Alternative Energy - Other industry. One other stock in the same industry, Gevo, Inc. (GEVO), finished the last trading session 1.6% higher at $1.3. GEVO has returned -22.4% over the past month.
For Gevo, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.04. This represents a change of +233.3% from what the company reported a year ago. Gevo currently has a Zacks Rank of #3 (Hold).
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This article originally published on Zacks Investment Research (zacks.com).
