Par Petroleum (PARR) shares ended the last trading session 6.8% higher at $13.80. 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 2% loss over the past four weeks.

Par Petroleum's stock price increase is mainly because the company is well-positioned to benefit from current market conditions. With crude oil prices falling, Par Petroleum, which refines and sells oil, positions itself to gain. The recent drop in crude oil prices was caused by concerns that President Donald Trump’s trade war could lead to a global recession. With OPEC+ increasing oil production and Saudi Arabia cutting prices, Par Petroleum can buy cheaper crude oil and refine it for better profit margins. This ability to profit in tough market conditions has boosted investor confidence, driving up the stock price.

This independent oil and gas company is expected to post quarterly earnings of $0.41 per share in its upcoming report, which represents a year-over-year change of -40.6%. Revenues are expected to be $1.61 billion, down 18.8% 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 Par Petroleum, the consensus EPS estimate for the quarter has been revised 55.2% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on PARR 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 >>>>

Par Petroleum is a member of the Zacks Oil and Gas - Refining and Marketing industry. One other stock in the same industry, RGC Resources Inc. (RGCO), finished the last trading session 3.6% higher at $22.10. RGCO has returned 4.1% over the past month.

RGC Resources' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.68. Compared to the company's year-ago EPS, this represents a change of +7.9%. RGC Resources currently boasts a Zacks Rank of #3 (Hold).

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Par Pacific Holdings, Inc. (PARR):Free Stock Analysis Report

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

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