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Iris Energy Limited (IREN) Surges 23.8%: Is This an Indication of Further Gains?

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Iris Energy Limited (IREN - Free Report) shares rallied 23.8% in the last trading session to close at $5.10. 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 36.1% loss over the past four weeks.

Iris Energy has recently signed a cloud service agreement with leading AI company, poolside, for 248 NVIDIA H100 GPUs. This must have led to the latest uptick in IREN’s share price.

This company is expected to post break-even quarterly earnings per share in its upcoming report, which represents a year-over-year change of +100%. Revenues are expected to be $36.28 million, up 163.7% 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 Iris Energy Limited, the consensus EPS estimate for the quarter has been revised 114.3% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on IREN going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Iris Energy Limited is a member of the Zacks Alternative Energy - Other industry. One other stock in the same industry, Ameresco (AMRC - Free Report) , finished the last trading session 2.1% higher at $22.39. AMRC has returned -18% over the past month.

Ameresco's consensus EPS estimate for the upcoming report has changed -7.4% over the past month to $0.60. Compared to the company's year-ago EPS, this represents a change of +71.4%. Ameresco currently boasts a Zacks Rank of #3 (Hold).


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