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Nexa Resources (NEXA) Surges 22.7%: Is This an Indication of Further Gains?

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Nexa Resources S.A. (NEXA - Free Report) shares ended the last trading session 22.7% higher at $14.65. 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 7% gain over the past four weeks.

Recently, an analyst at Citigroup raised its price target on Nexa Resources from $11.00 to $12.50 while maintaining a "Neutral" rating. This followed a downward revision in March 2026, when the target had been cut to $11.00. The latest adjustment indicates cautious optimism driven by positive underlying catalysts, including strong fourth-quarter 2025 results and increased mineral reserves, despite broader macro headwinds.

NEXA was also recently upgraded by an analyst at Morgan Stanley from an "underweight" rating to an "equal weight" rating, raising the price target to $11 from $7.70. The upgrade was driven by increased sector volatility, with the firm favoring miners with exposure to gold and silver.

Operationally, Nexa delivered a strong performance in the fourth quarter of 2025, underpinned by consistent execution and a continued focus on efficiency and cost control. The company reported its best quarter of the year, achieving record net revenues and adjusted EBITDA. This performance was supported by solid production levels and higher realized prices for zinc and key by-products. Net revenues reached $903 million in the quarter, representing an 18% increase quarter over quarter. The growth was primarily driven by higher London Metal Exchange (LME) prices for lead and copper, along with stronger silver prices. Adjusted earnings per share were 60 cents in the quarter against a loss of $1.00 in the prior-year quarter.

This company is expected to post quarterly earnings of $0.61 per share in its upcoming report, which represents a year-over-year change of +281.3%. Revenues are expected to be $957.97 million, up 52.8% 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 Nexa Resources, the consensus EPS estimate for the quarter has been revised 14.3% 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 NEXA 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 >>>>

Nexa Resources is part of the Zacks Mining - Miscellaneous industry. Alpha Metallurgical (AMR - Free Report) , another stock in the same industry, closed the last trading session 3.6% higher at $193.55. AMR has returned -2.1% in the past month.

For Alpha Metallurgical, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $3.27. This represents a change of +225.8% from what the company reported a year ago. Alpha Metallurgical currently has a Zacks Rank of #2 (Buy).

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