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Strength Seen in Largo Inc. (LGO): Can Its 7% Jump Turn into More Strength?

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Largo Inc. (LGO - Free Report) shares ended the last trading session 7% higher at $12.47. 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 41.7% gain over the past four weeks.

Investment company, West Family Investments, Inc. has bought 2,843,127 shares of Largo Inc. during the fourth-quarter of 2021, according to the most recent filings of the investment company. This must have resulted in the recent uptick in Largo’s share performance.

This company is expected to post quarterly earnings of $0.14 per share in its upcoming report, which represents a year-over-year change of +16.7%. Revenues are expected to be $51.22 million, up 21.2% 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 Largo Inc., 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 LGO 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 >>>>

Largo Inc. is a member of the Zacks Alternative Energy - Other industry. One other stock in the same industry, NextEra Energy Partners (NEP - Free Report) , finished the last trading session 0.2% lower at $80. NEP has returned 8.6% over the past month.

NextEra Energy Partners' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.48. Compared to the company's year-ago EPS, this represents a change of -82%. NextEra Energy Partners currently boasts a Zacks Rank of #3 (Hold).


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