Centrus Energy Corp. (LEU) Soars 7.9%: Is Further Upside Left in the Stock?
Centrus Energy Corp. (LEU) shares ended the last trading session 7.9% higher at $54.52. 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 7.5% loss over the past four weeks.
Centrus Energy shares gained since receiving the news that the Department of Energy is looking for bids from contractors in the United States to help build a domestic supply of enriched uranium fuel for use in next-generation reactors.
Uranium demand has risen in recent years due to its use in nuclear energy. The World Nuclear Association nticipates uranium demand to increase to almost 130,000 tons by 2040, rising 98% from an estimate of 65,650 tons stated in 2023. Uranium spot prices are currently around $92 a pound, the highest since 2007.
LEU is a critical component in the manufacturing of nuclear fuel for power reactors, and it is likely to further gain from the ongoing solid demand for uranium.
This company is expected to post quarterly earnings of $0.78 per share in its upcoming report, which represents a year-over-year change of -45.1%. Revenues are expected to be $61.05 million, down 51.6% 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 Corp., 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 Corp. is part of the Zacks Mining - Non Ferrous industry. Amerigo Resources (ARREF), another stock in the same industry, closed the last trading session 1.2% lower at $1.02. ARREF has returned 1.8% in the past month.
For Amerigo Resources , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.01. This represents a change of +200% from what the company reported a year ago. Amerigo Resources currently has a Zacks Rank of #3 (Hold).
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