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Energy Fuels (UUUU) Moves 14.7% Higher: Will This Strength Last?

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Energy Fuels (UUUU - Free Report) shares soared 14.7% in the last trading session to close at $27.72. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 70% gain over the past four weeks.

Shares of Energy Fuels gained since it announced that it has inked a deal to acquire, a leading producer of REE metals and alloys, Australian Strategic Materials Limited. The acquisition of Australian Strategic Materials Limited further strengthens this strategy by combining ASM’s Korean Metals Plant, one of the few REE metal and alloy producers outside China, with Energy Fuels’ existing REE oxide production at White Mesa.

This uranium and vanadium miner and developer is expected to post quarterly loss of $0.07 per share in its upcoming report, which represents a year-over-year change of +63.2%. Revenues are expected to be $27 million, down 32.4% 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 Energy Fuels, 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 UUUU 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 >>>>

Energy Fuels is a member of the Zacks Mining - Non Ferrous industry. One other stock in the same industry, Ero Copper Corp. (ERO - Free Report) , finished the last trading session 2% higher at $36.1. ERO has returned 23.4% over the past month.

Ero Copper's consensus EPS estimate for the upcoming report has changed +62.7% over the past month to $0.99. Compared to the company's year-ago EPS, this represents a change of +482.4%. Ero Copper currently boasts a Zacks Rank of #3 (Hold).


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