NEW YORK (TheStreet) -- Shares of Energy XXI (EXXI) are surging, up 6.33% to $3.52 in morning trading on Tuesday as oil prices rallied, following economic data showing the U.S. economy grew at its quickest pace in 11 years in the third quarter, CNBC reports.
The Commerce Department revised upward its estimate of U.S. gross domestic product growth to a 5% annual pace from the 3.9% it reported last month, citing stronger consumer and business spending, CNBC added.
Brent crude, which fell to a five-year low of $58.50 last week, is up 1% to $60.71 per barrel as of 10:40 a.m., while West Texas Intermediate Crude rose 1.66% to $56.18 a barrel.
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Oil prices have plummeted nearly 50% since the summer due to a global oversupply, in addition to OPEC's decision to maintain its output levels at a meeting last month.
Separately, TheStreet Ratings team rates ENERGY XXI LTD as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate ENERGY XXI LTD (EXXI) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, generally high debt management risk and disappointing return on equity."