Stocks To Watch: CNX Resources Corporation [NYSE: CNX] made significant gains on Tuesday. It surged by 26.33% to close the day at $7.82. This followed Q2 results that were better than what analysts were expecting. The company reported revenues of around $605.1 million, which beat analyst expectations of about $368 million by 64.4%. Its net income also rose significantly from roughly $61 million to $193 million when compared to the same quarter last year. The company also made significant progress on a year-on-year basis.
As per its earnings transcript, the company achieved this growth by successfully implementing its 3 main drivers of differentiation. They include the company’s marketing strategy, the cost structure, and the asset portfolio. For instance, on the asset portfolio, the company has around 100k core Southwest PA Marcellus acres, and includes a huge stacked-pay inventory and midstream control.
From the charts, CNX is currently trading in a bullish channel. All through Tuesday’s session, the stock was trending upwards, and held above the 50-day moving average for the better part of the day. However, towards the end of the session, it slightly corrected, and closed the day slightly below the 200-day moving average.
As such, yesterday’s closing price of $7.82 will be a key level for investors to watch in the day. If it gains from this point and extends above the day’s high of $8.02, it would be a signal to increased bullish sentiment. On the other hand, if it fails, it could correct further in the day and on the chart.