Strength Seen in Centrus Energy Corp. (LEU): Can Its 10.7% Jump Turn into More Strength?
Centrus Energy Corp. (LEU) shares ended the last trading session 10.7% higher at $60. 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 22.5% gain over the past four weeks.
Shares of Centrus Energy have gained on the back of the surge in uranium prices. Uranium soared to over $65 per pound in September at levels last seen in 2011. Prices have gained 34.4% in a year, 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. 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 with the estimated 65,650 tons in 2023.
Centrus recently announced that it is set to start production of High-Assay Low-Enriched Uranium (HALEU) at its American Centrifuge Plant in Piketon, OH in October 2023. It will be the first new U.S.-owned uranium enrichment plant to begin production since 1954.
This company is expected to post quarterly earnings of $0.24 per share in its upcoming report, which represents a year-over-year change of +157.1%. Revenues are expected to be $50 million, up 50.6% 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 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 #1 (Strong Buy). 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. Energy Fuels (UUUU), another stock in the same industry, closed the last trading session 9% higher at $8.94. UUUU has returned 20.2% in the past month.
For Energy Fuels , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.06. This represents no change from what the company reported a year ago. Energy Fuels currently has a Zacks Rank of #3 (Hold).
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