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Strength Seen in Nexa Resources S.A. (NEXA): Can Its 7% Jump Turn into More Strength?

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Nexa Resources S.A. (NEXA - Free Report) shares ended the last trading session 7% higher at $5.51. 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 28.5% loss over the past four weeks.

Nexa Resources’ shares have gained following its announcement that the Atacocha San Gerardo open pit mine has resumed production as protest activities by the San Juan de Milpo community have ended and access to the mine has been released. The mine is now operating at full capacity and the ompany expects to recover the lost zinc production of 0.4 kt in the coming months. NEXA has maintained its production guidance for 2022.

This company is expected to post quarterly earnings of $0.50 per share in its upcoming report, which represents a year-over-year change of +457.1%. Revenues are expected to be $761.81 million, up 16.3% 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 Nexa Resources S.A., 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 NEXA 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 >>>>

Nexa Resources S.A. is part of the Zacks Mining - Miscellaneous industry. Wheaton Precious Metals Corp. (WPM - Free Report) , another stock in the same industry, closed the last trading session 2.1% higher at $33.73. WPM has returned -3.1% in the past month.

For Wheaton Precious Metals Corp., the consensus EPS estimate for the upcoming report has changed -2.7% over the past month to $0.30. This represents no change from what the company reported a year ago. Wheaton Precious Metals Corp. currently has a Zacks Rank of #4 (Sell).


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