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Strength Seen in Centrus Energy (LEU): Can Its 12.1% Jump Turn into More Strength?

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Centrus Energy Corp. (LEU - Free Report) shares ended the last trading session 12.1% higher at $294.49. 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 48.2% gain over the past four weeks.

Centrus Energy shares have gained as uranium futures rose to $76.5 per pound, edging closer to the two-month high of $77 hit on Sept. 8, driven by expectations of expanding nuclear power capacity amid tightening supply expectations. The U.S government announced plans to increase uranium in its national strategic stockpile. The U.S and U.K. governments recently signed Technology Prosperity Deal. Their leading research and standards institutions will collaborate on areas across artificial intelligence, nuclear energy, and quantum computing. This deal aims to streamline and accelerate licensing, with the goal of completing reactor design reviews within two years and site licensing within one year. The deal also commits the United Kingdom to achieve full independence from Russian nuclear fuel by the end of 2028.

This company is expected to post quarterly earnings of $0.21 per share in its upcoming report, which represents a year-over-year change of +170%. Revenues are expected to be $76.54 million, up 32.7% 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 Centrus 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 LEU 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 >>>>

Centrus Energy is part of the Zacks Mining - Non Ferrous industry. United States Antimony Corporation (UAMY - Free Report) , another stock in the same industry, closed the last trading session 10.2% higher at $6.49. UAMY has returned 29.7% in the past month.

For United States Antimony, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.02. This represents a change of +300% from what the company reported a year ago. United States Antimony currently has a Zacks Rank of #4 (Sell).


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