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Have you been paying attention to shares of U.S. Silica Holdings (SLCA)? Shares have been on the move with the stock up 54.8% over the past month. The stock hit a new 52-week high of $15.09 in the previous session. U.S. Silica Holdings has gained 103.7% since the start of the year compared to the 7.8% move for the Zacks Basic Materials sector and the 9.3% return for the Zacks Mining - Miscellaneous industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on February 26, 2021, Silica Holdings reported EPS of $-0.26 versus consensus estimate of $-0.35 while it beat the consensus revenue estimate by 16.79%.
For the current fiscal year, Silica Holdings is expected to post earnings of $-0.65 per share on $997.65 million in revenues. This represents a 58.06% change in EPS on a 17.94% change in revenues. For the next fiscal year, the company is expected to earn $-0.37 per share on $1.13 billion in revenues. This represents a year-over-year change of 44.1% and 13.5%, respectively.
Silica Holdings may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Silica Holdings has a Value Score of D. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of B.
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Silica Holdings currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Silica Holdings fits the bill. Thus, it seems as though Silica Holdings shares could have a bit more room to run in the near term.
How Does Silica Holdings Stack Up to the Competition?
Shares of Silica Holdings have been rising, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also looking good, including ANGLO AMER (NGLOY), Teck Resources (TECK), and Rio Tinto (RIO), all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.
The Zacks Industry Rank is in the top 39% of all the industries we have in our universe, so it looks like there are some nice tailwinds for Silica Holdings, even beyond its own solid fundamental situation.
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U.S. Silica Holdings, Inc. (SLCA) : Free Stock Analysis Report
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