LyondellBasell (LYB) shares soared 6.4% in the last trading session to close at $65.88. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 8.4% gain over the past four weeks.
LYB’s shares rallied after KeyBanc reportedly upgraded it to “Overweight” from “Sector Weight” with a price target of $73, citing the ongoing conflict in Iran to benefit U.S. petrochemical companies.
This oil refiner and chemical company is expected to post quarterly earnings of $0.34 per share in its upcoming report, which represents a year-over-year change of +3%. Revenues are expected to be $7.49 billion, down 2.5% 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 LyondellBasell, the consensus EPS estimate for the quarter has been revised 1% 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 LYB 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 >>>>
LyondellBasell is part of the Zacks Chemical - Diversified industry. Northern Technologies (NTIC), another stock in the same industry, closed the last trading session 1.5% lower at $8.65. NTIC has returned -1.6% in the past month.
For Northern Technologies, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.02. This represents a change of +166.7% from what the company reported a year ago. Northern Technologies currently has a Zacks Rank of #3 (Hold).
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
