Century (CENX) Surges 9.6%: Is This an Indication of Further Gains?
Century Aluminum (CENX) shares ended the last trading session 9.6% higher at $6.27. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 30.9% loss over the past four weeks.
CENX’s stock popped on a Bloomberg report that the Biden administration is mulling a complete ban on Russian aluminum in response to Moscow's military escalation in Ukraine. The news of a possible ban led to a spike in aluminum prices on the London Metal Exchange and sent aluminum producer stocks soaring.
This aluminum producer is expected to post quarterly earnings of $0.25 per share in its upcoming report, which represents a year-over-year change of +516.7%. Revenues are expected to be $665.53 million, up 14.5% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Century, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on CENX going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Century is part of the Zacks Metal Products - Procurement and Fabrication industry. Circor (CIR), another stock in the same industry, closed the last trading session 5.7% lower at $16.47. CIR has returned 4.8% in the past month.
For Circor , the consensus EPS estimate for the upcoming report has changed -34.8% over the past month to $0.36. This represents a change of -28% from what the company reported a year ago. Circor currently has a Zacks Rank of #5 (Strong Sell).
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