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Strength Seen in Silica Holdings (SLCA): Can Its 7.5% Jump Turn into More Strength?
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Silica Holdings (SLCA - Free Report) shares ended the last trading session 7.5% higher at $13.63. 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 11.2% gain over the past four weeks.
SLCA’s rally appears to be driven by the optimism over strong demand in the company’s Oil & Gas division. Favorable commodity pricing supporting an active well completion environment augurs well for the division. Strong demand coupled with disciplined pricing actions and cost-reduction initiatives are driving contribution margins in Oil & Gas. New product development, cost cuts and price hike actions are also expected to support margins in the Industrial and Specialty Products segment.
This commercial silica producer is expected to post quarterly earnings of $0.21 per share in its upcoming report, which represents a year-over-year change of -67.2%. Revenues are expected to be $338.48 million, down 23.5% 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 Silica Holdings, the consensus EPS estimate for the quarter has been revised 14.7% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on SLCA going forward to see if this recent jump can turn into more strength down the road.
Silica Holdings is a member of the Zacks Mining - Miscellaneous industry. One other stock in the same industry, Reliance (RS - Free Report) , finished the last trading session 1.6% higher at $338.51. RS has returned 4% over the past month.
Reliance's consensus EPS estimate for the upcoming report has changed +2.1% over the past month to $5.52. Compared to the company's year-ago EPS, this represents a change of -13.3%. Reliance currently boasts a Zacks Rank of #3 (Hold).
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Strength Seen in Silica Holdings (SLCA): Can Its 7.5% Jump Turn into More Strength?
Silica Holdings (SLCA - Free Report) shares ended the last trading session 7.5% higher at $13.63. 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 11.2% gain over the past four weeks.
SLCA’s rally appears to be driven by the optimism over strong demand in the company’s Oil & Gas division. Favorable commodity pricing supporting an active well completion environment augurs well for the division. Strong demand coupled with disciplined pricing actions and cost-reduction initiatives are driving contribution margins in Oil & Gas. New product development, cost cuts and price hike actions are also expected to support margins in the Industrial and Specialty Products segment.
This commercial silica producer is expected to post quarterly earnings of $0.21 per share in its upcoming report, which represents a year-over-year change of -67.2%. Revenues are expected to be $338.48 million, down 23.5% 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 Silica Holdings, the consensus EPS estimate for the quarter has been revised 14.7% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on SLCA 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 >>>>
Silica Holdings is a member of the Zacks Mining - Miscellaneous industry. One other stock in the same industry, Reliance (RS - Free Report) , finished the last trading session 1.6% higher at $338.51. RS has returned 4% over the past month.
Reliance's consensus EPS estimate for the upcoming report has changed +2.1% over the past month to $5.52. Compared to the company's year-ago EPS, this represents a change of -13.3%. Reliance currently boasts a Zacks Rank of #3 (Hold).