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Hut 8 (HUT) Stock Declines While Market Improves: Some Information for Investors

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Hut 8 (HUT - Free Report) closed at $8.42 in the latest trading session, marking a -0.36% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.76% for the day. Elsewhere, the Dow gained 0.59%, while the tech-heavy Nasdaq added 1.12%.

Heading into today, shares of the crypto currency mining company had lost 36.66% over the past month, lagging the Finance sector's loss of 2.01% and the S&P 500's gain of 2.5% in that time.

The upcoming earnings release of Hut 8 will be of great interest to investors. The company is forecasted to report an EPS of -$0.30, showcasing a 50% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $23.7 million, indicating a 47.36% growth compared to the corresponding quarter of the prior year.

Investors might also notice recent changes to analyst estimates for Hut 8. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Hut 8 is currently sporting a Zacks Rank of #3 (Hold).

In the context of valuation, Hut 8 is at present trading with a Forward P/E ratio of 49.71. Its industry sports an average Forward P/E of 10.26, so one might conclude that Hut 8 is trading at a premium comparatively.

The Financial - Miscellaneous Services industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 161, placing it within the bottom 37% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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