Uranium Energy (UEC) Soars 7.3%: Is Further Upside Left in the Stock?
Uranium Energy (UEC) shares soared 7.3% in the last trading session to close at $8.20. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 20.7% gain over the past four weeks.
Uranium Energy's stocks have mirrored the upward trend in uranium prices, driven by robust demand and constrained supply. The recent declaration from Kazatomprom, the world's largest uranium mining company based in Kazakhstan, stating its intention to limit uranium production to 80% of the permitted maximum output, as specified in Kazakh subsoil usage contracts, has contributed to the spike in uranium prices. This reduction from the previously announced 90% level is attributed to challenges in securing an adequate supply of sulfuric acid, a crucial component in the company's in-situ uranium mining process.
This uranium mining and exploration company is expected to post break-even quarterly earnings per share in its upcoming report, which represents a year-over-year change of -100%. Revenues are expected to be $16 million, down 66.6% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Uranium Energy, 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 UEC going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Uranium Energy belongs to the Zacks Mining - Miscellaneous industry. Another stock from the same industry, Globe Specialty Metals (GSM), closed the last trading session 0.4% higher at $5.08. Over the past month, GSM has returned -19.7%.
For Globe Specialty Metals , the consensus EPS estimate for the upcoming report has changed -120% over the past month to $0.04. This represents a change of -90.5% from what the company reported a year ago. Globe Specialty Metals currently has a Zacks Rank of #4 (Sell).
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