Piedmont Lithium Inc. - Sponsored ADR (PLL) Soars 11.5%: Is Further Upside Left in the Stock?

Piedmont Lithium Inc. - Sponsored ADR (PLL) shares soared 11.5% in the last trading session to close at $7.49. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 9.6% gain over the past four weeks.

Shares of Piedmont Lithium gained, driven by the increase in price of lithium. Even though lithium has fallen 24.9% in a year's time, it has improved 7.4% in a month.

This company is expected to post quarterly loss of $0.38 per share in its upcoming report, which represents a year-over-year change of +44.9%. Revenues are expected to be $11.3 million, down 14.6% 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 Piedmont Lithium Inc. - Sponsored ADR, 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 PLL 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 >>>>

Piedmont Lithium Inc. - Sponsored ADR is a member of the Zacks Mining - Miscellaneous industry. One other stock in the same industry, Denison Mine (DNN), finished the last trading session 0.5% higher at $1.87. DNN has returned % over the past month.

For Denison Mine, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.02. This represents a change of -100% from what the company reported a year ago. Denison Mine currently has a Zacks Rank of #3 (Hold).

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This article originally published on Zacks Investment Research (zacks.com).

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