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A-Mark (AMRK) Moves 8.8% Higher: Will This Strength Last?

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A-Mark Precious Metals (AMRK - Free Report) shares rallied 8.8% in the last trading session to close at $81.10. 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 5.7% gain over the past four weeks.

A-Mark’s share prices have gained on the back of higher gold and silver prices. Gold prices are up 6% year to date, courtesy of the highly volatile geopolitical environment. With the Ukraine conflict likely to continue, increasing supply disruptions and inflationary pressures would support gold, according to analysts. Meanwhile, silver prices have gone up 8% so far this year, driven by the conflict. Silver demand is expected to remain strong this year, potentially providing support for prices.

This precious metals trading company is expected to post quarterly earnings of $1.95 per share in its upcoming report, which represents a year-over-year change of -77.9%. Revenues are expected to be $1.95 billion, down 4.9% 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 A-Mark, 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 AMRK 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 >>>>

A-Mark belongs to the Zacks Precious Metals and Jewels industry. Another stock from the same industry, Charles & Colvard Ltd (CTHR - Free Report) , closed the last trading session 2.3% higher at $1.79. Over the past month, CTHR has returned -7.9%.

Charles & Colvard Ltd's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.01. Compared to the company's year-ago EPS, this represents a change of -66.7%. Charles & Colvard Ltd currently boasts a Zacks Rank of #3 (Hold).


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