Yahoo Finance Centrus Energy (LEU) Surges 8.6%: Is This an Indication of Further Gains?
Centrus Energy Corp. (LEU) shares rallied 8.6% in the last trading session to close at $45.01. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 10.4% gain over the past four weeks.
Centrus Energy shares gained since the news that it inked a contingent supply agreement with Korea Hydro & Nuclear Power for a decade of low-enriched uranium deliveries to feed Korea's reactors. This deal has made a significant step forward in the company’s efforts to deploy uranium enrichment capacity at its American Centrifuge Plant in Piketon, OH.
The collaboration with Korea Hydro & Nuclear Power is a critical step in Centrus' aim to re-establish a large-scale, U.S.-owned uranium enrichment facility. The company intends to expand the operation for large-scale manufacturing of low-enriched uranium and high-assay low-enriched uranium for existing and advanced reactors, pending appropriate funding and procurement agreements.
This company is expected to post quarterly earnings of $0.18 per share in its upcoming report, which represents a year-over-year change of -65.4%. Revenues are expected to be $56.5 million, up 10.1% 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 Centrus 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 LEU going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Centrus Energy is a member of the Zacks Mining - Non Ferrous industry. One other stock in the same industry, Southern Copper (SCCO), finished the last trading session 1.2% lower at $103.60. SCCO has returned 3.1% over the past month.
For Southern Copper , the consensus EPS estimate for the upcoming report has changed -1.9% over the past month to $1.04. This represents a change of +31.7% from what the company reported a year ago. Southern Copper currently has a Zacks Rank of #4 (Sell).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Centrus Energy Corp. (LEU) : Free Stock Analysis Report
Southern Copper Corporation (SCCO) : Free Stock Analysis Report
