Centrus Energy Corp. (LEU) Stock Jumps 11.6%: Will It Continue to Soar?
Centrus Energy Corp. (LEU) shares soared 11.6% in the last trading session to close at $35.20. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 10.9% loss over the past four weeks.
Shares of Centrus Energy have gained following the news that it has entered into a new memorandum of understanding (MOU) to supply high-assay, low-enriched uranium (HALEU) to TerraPower’s Natrium reactor and energy storage system.
Per the agreement, Centrus Energy will ensure the supply of HALEU to the reactor that will help meet the project’s 2030 operation date. To this end, Centrus will scale up production capacity to meet TerraPower's fuel requirements.
This company is expected to post quarterly earnings of $0.44 per share in its upcoming report, which represents a year-over-year change of -82.5%. Revenues are expected to be $63.5 million, down 35.9% 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. belongs to the Zacks Mining - Non Ferrous industry. Another stock from the same industry, Amerigo Resources (ARREF), closed the last trading session 1.3% lower at $1.18. Over the past month, ARREF has returned 0.9%.
Amerigo Resources' consensus EPS estimate for the upcoming report has changed -100% over the past month to -$0.02. Compared to the company's year-ago EPS, this represents a change of +33.3%. Amerigo Resources currently boasts a Zacks Rank of #3 (Hold).
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