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Hut 8 (HUT) Moves 14.1% Higher: Will This Strength Last?

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Hut 8 (HUT - Free Report) shares soared 14.1% in the last trading session to close at $21.08. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 15.1% gain over the past four weeks.

HUT is benefiting from its strategic transition to an integrated energy infrastructure platform, the launch of American Bitcoin, and its focus on capital-efficient growth and diversified revenue streams.

This crypto currency mining company is expected to post quarterly loss of $0.15 per share in its upcoming report, which represents a year-over-year change of -850%. Revenues are expected to be $48.19 million, up 36.8% 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 Hut 8, the consensus EPS estimate for the quarter has been revised 1.4% 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 HUT 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 >>>>

Hut 8 is a member of the Zacks Financial - Miscellaneous Services industry. One other stock in the same industry, LendingClub (LC - Free Report) , finished the last trading session 1.5% higher at $12.45. LC has returned 17.3% over the past month.

LendingClub's consensus EPS estimate for the upcoming report has changed +4.5% over the past month to $0.15. Compared to the company's year-ago EPS, this represents a change of +15.4%. LendingClub currently boasts a Zacks Rank of #3 (Hold).


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