Transportadora De Gas Ord B (TGS) Surges 5.2%: Is This an Indication of Further Gains?

Transportadora De Gas Sa Ord B (TGS) shares soared 5.2% in the last trading session to close at $14.34. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 3.2% gain over the past four weeks.

The bullishness could be attributed to TGS’ stable fee-based revenues from long-term contracts with shippers. The company's core business involves the transportation of natural gas to Argentina and abroad. This indicates the stability and consistent demand for its services, especially in regions like Argentina, where natural gas is a vital source of energy. A diversified business model and TGS' ability to capitalize on the growing demand for natural gas as an energy source have been significant growth drivers for the company.

This company is expected to post quarterly earnings of $0.28 per share in its upcoming report, which represents a year-over-year change of +40%. Revenues are expected to be $215.31 million, down 11.1% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Transportadora De Gas Ord B, 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 TGS 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 >>>>

Transportadora De Gas Ord B is a member of the Zacks Oil and Gas - Production and Pipelines industry. One other stock in the same industry, Expro Group Holdings (XPRO), finished the last trading session 0.9% higher at $19.35. XPRO has returned -0.3% over the past month.

For Expro Group Holdings, the consensus EPS estimate for the upcoming report has changed -38.5% over the past month to $0.12. This represents a change of +300% from what the company reported a year ago. Expro Group Holdings currently has a Zacks Rank of #5 (Strong Sell).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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