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Silica Holdings (SLCA) Moves 9.4% Higher: Will This Strength Last?

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Silica Holdings (SLCA - Free Report) shares ended the last trading session 9.4% higher at $9.09. 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 11.8% loss over the past four weeks.

Optimism over a recovery in broader markets and improving commodity prices are driving the stock higher. The company’s Oil & Gas division is benefiting from a rebound in economic activities, favorable commodity prices and strong drilling and completion activities, which are driving proppant sales volumes. New product sales and price hikes are also driving volumes and margins in its Industrial and Specialty Products segment.


Price and Consensus

Price Consensus Chart for SLCA

This commercial silica producer is expected to post quarterly loss of $0.11 per share in its upcoming report, which represents a year-over-year change of +26.7%. Revenues are expected to be $282.6 million, up 60.1% 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 Silica Holdings, 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 SLCA 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 >>>>

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