Strength Seen in HighPeak Energy (HPK): Can Its 6.0% Jump Turn into More Strength?

HighPeak Energy, Inc. (HPK) shares ended the last trading session 6% higher at $8.34. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 3.6% loss over the past four weeks.

HighPeak Energy ended sharply higher on the last trading day, driven by reports that the Permian Basin oil producer is exploring a potential sale after receiving acquisition interest. The company is reportedly engaging with prospective buyers, with discussions taking place in recent weeks. HighPeak also received an acquisition offer from an unidentified international party. Investor interest was further supported by the growing appeal of U.S. crude assets amid Middle East supply concerns and elevated oil prices, although there is no certainty that the sale process will result in a transaction.

This company is expected to post quarterly loss of $0.01 per share in its upcoming report, which represents a year-over-year change of -133.3%. Revenues are expected to be $229.4 million, up 21.5% 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 HighPeak Energy, 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 HPK 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 >>>>

HighPeak Energy is a member of the Zacks Oil and Gas - Exploration and Production - United States industry. One other stock in the same industry, Riley Exploration Permian, Inc. (REPX), finished the last trading session 0.5% higher at $43.31. REPX has returned 15.1% over the past month.

Riley Exploration Permian's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.84. Compared to the company's year-ago EPS, this represents a change of +139%. Riley Exploration Permian currently boasts a Zacks Rank of #3 (Hold).

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This article originally published on Zacks Investment Research (zacks.com).

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