Ultra Petroleum (UPL) Stock Follows Natural Gas Up

Ultra Petroleum UPL Stock News

Ultra Petroleum Corp (NASDAQ: UPL) is making a run for the top in the market early on this morning, trading on gains of more than 15%. However, with no recently released news, many are wondering what’s happening.

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In short, UPL seems to be climbing as a result of a mix of factors. First and foremost, natural gas futures are headed up. Of course, this is great for a company that produces natural gas. Moreover, in social media, we’re seeing automated signals everywhere, increasing trader and investor awareness. Here’s what’s going on:

Here’s Why UPL Stock Is Flying

With no news out and gains of more than 15%, Ultra Petroleum is grabbing quite a bit of attention this morning. To get a good understanding of why the stock is flying, it’s important to know what the company does.

UPL is engaged in the energy industry. In particular, the company is primarily focused on increasing its natural gas holdings. As such, UPL stock is highly dependent on the price of natural gas. After all, when the value of the commodity rises, the company earns more revenue from sales of its flagship product.

With that said, while natural gas supplies seem to be rising, a bullish outlook associated with coming weather suggests a strong rise in demand to come. So, investors seem to be looking past the supply data and focusing on the future opportunity.

Also, it seems as thought automated signals are lighting up around the stock. In fact, in several posts on the StockTwits Ultra Petroleum message board, automated insights are being given suggesting an opportunity. Here are just a few:

$UPL is valued rather cheaply when comparing the Enterprise Value to EBITDA ratio to the industry average of 5.07. chartmill.com/analyze.php?u… – ChartMill

$UPL americanbulls.com/SignalPag… Our system’s recommendation today is to BUY. The BULLISH HARAMI pattern finally received a confirmation – StockTraders

With a Forward PE of 1.15, the valuation of $UPL can be described as cheap. chartmill.com/analyze.php?u… – ChartMill

With so much attention being given to the stock in social, and messages like these being circulated as some of the most common links seen, this could also be helping to drive the stock up.

Final Thoughts

The truth of the matter is that any penny stock is a risky play. Nonetheless, based on the expectations of a strong weather season leading to increasing natural gas demand, now may just be the time to consider UPL stock.

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