Energy Fuels (UUUU) Moves 5.7% Higher: Will This Strength Last?
Energy Fuels (UUUU) shares rallied 5.7% in the last trading session to close at $7.85. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 18.7% gain over the past four weeks.
Shares of Energy Fuels have gained on the back of the surge in uranium prices. Uranium prices have gained 20% so far in 2023, outperforming other metals. Uranium prices are currently at around $62 per pound- levels last seen in 2011 driven by concerns over supply amid bullish long-term demand.
Demand for the metal has risen in recent times due to its application in nuclear energy production and the increasing popularity of nuclear as a renewable energy resource. Per the World Nuclear Association’s latest report, the global demand for uranium in nuclear reactors is expected be around 130,000 tons in 2040, compared to the estimated 65,650 tons in 2023.
This uranium and vanadium miner and developer is expected to post quarterly loss of $0.06 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $3.34 million, up 14% 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 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 belongs to the Zacks Mining - Non Ferrous industry. Another stock from the same industry, Ero Copper Corp. (ERO), closed the last trading session 2.5% lower at $18.35. Over the past month, ERO has returned -6%.
Ero Copper Corp.'s consensus EPS estimate for the upcoming report has changed -1.5% over the past month to $0.22. Compared to the company's year-ago EPS, this represents a change of +450%. Ero Copper Corp. currently boasts a Zacks Rank of #3 (Hold).
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