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TXO Partners LP Faces Pressure Before Earnings Report

TXO Partners LP's stock performance raises concerns as the company reports a significant monthly loss and prepares for its upcoming earnings disclosure, indicating mixed prospects for investors as EPS is expected to rise but revenue declines.

Date: 
AI Rating:   5

TXO Partners LP (TXO) has been underperforming in the recent trading session, with a stock price of $18.27, marking a -0.16% decline. This performance falls short of the S&P 500’s slight gain of 0.03%. Over the past month, TXO has seen a notable loss of 12.4%, underperforming the Oils-Energy sector, which lost 3.35% and lagging behind the S&P 500’s gain of 1.54%.

Analysts are looking forward to the upcoming earnings report, where TXO is anticipated to disclose an Earnings Per Share (EPS) of $0.36, reflecting a substantial increase of 33.33% from the previous year. For the coming fiscal year, consensus estimates predict earnings of $1.48 per share, which denotes a positive change of +10.45%. However, the same consensus estimates forecast a revenue decrease of 15.41% year-over-year, aligning with an expected revenue of $322.06 million.

The expectations surrounding EPS present a slightly positive outlook, while the revenue projections indicate potential challenges ahead for TXO, especially given market sentiments. The unchanged Zacks Consensus EPS estimate over the last 30 days suggests stability, but the company holds a Zacks Rank of #5 (Strong Sell), indicating lack of confidence among analysts.

Valuation-wise, TXO is currently trading with a Forward P/E ratio of 12.41, matching its industry's Forward P/E. However, with an overall Zacks Industry Rank of 236, placing it in the bottom 7% among all industries, the prospects appear dim for capital appreciation compared to more robust sectors.

Given these factors, investor sentiment may be tethered to the anticipated earnings report, particularly weighing the positive EPS forecast against the significant revenue decline. The correlation between analyst estimate revisions and stock performance adds another layer of scrutiny moving forward as market participants reassess their positions.

Stocks:  TXO