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Uranium Energy (UEC) Surges 6.3%: Is This an Indication of Further Gains?

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Uranium Energy (UEC - Free Report) shares soared 6.3% in the last trading session to close at $7.42. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 2.2% gain over the past four weeks.

Uranium Energy has gained on the news that the U.S. Department of Energy will begin soliciting bids for the supply of up to $3.4 billion worth of domestically produced nuclear reactor fuel.

Around $2.7 billion of this amount was authorized after President Joe Biden signed a ban on imports of enriched uranium from Russia. This move aims to eliminate U.S. dependence on Russian uranium fuel and revive domestic nuclear fuel production.

This uranium mining and exploration company is expected to post quarterly earnings of $0.01 per share in its upcoming report, which represents a year-over-year change of +150%. Revenues are expected to be $21 million, up 3.9% 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 Uranium Energy, 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 UEC 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 >>>>

Uranium Energy is a member of the Zacks Mining - Miscellaneous industry. One other stock in the same industry, Silvercorp (SVM - Free Report) , finished the last trading session 7.6% higher at $3.96. SVM has returned 3.1% over the past month.

For Silvercorp, the consensus EPS estimate for the upcoming report has changed -12.5% over the past month to $0.02. This represents a change of -33.3% from what the company reported a year ago. Silvercorp currently has a Zacks Rank of #4 (Sell).


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