Why Kosmos Energy Rocketed 18% Out of the Gate Today
Shares of Kosmos Energy (NYSE: KOS) leaped 18% within the first few minutes of trading on Nov. 24. That follows a trend of late: The offshore exploration and production company's stock is higher by around 40% over the past five trading days including today's early advance.
But Kosmos' stock quickly pulled back from its early peak, and was only higher by 7% or so at 10 a.m. EST.
The big story really isn't about Kosmos, per se. What's changed lately is Wall Street's view of the energy sector. With the list of potentially effective coronavirus vaccines now up to three, there's an increasing belief that the world will, someday, get back to a more normal level of economic activity. If that happens, then oil and natural gas demand will increase. Energy prices are likely to move higher as well, and have, indeed, been rising of late. A sustained recovery will in turn mean companies like Kosmos start to see their revenues and earnings improve.
Source Fool.com
