Ero Copper (ERO) Soars 7.9%: Is Further Upside Left in the Stock?

Ero Copper Corp. (ERO) shares soared 7.9% in the last trading session to close at $18.72. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 19% gain over the past four weeks.

Ero Copper’s shares have gained since it reported the final assay results from its 28,000-meter Phase 1 drill program at the Furnas Copper-Gold Project, located in the Carajás Mineral Province in Pará State, Brazil. Results confirm high-grade continuity throughout the deposit and significantly expand mineralization within the high-grade zones, reinforcing the project’s potential to be a large-scale, long-life, high-grade copper and gold mining operation. ERO expects to complete the 17,000-meter Phase 2 drill program in the early part of fourth quarter of 2025, three months ahead of schedule. 

The company’s shares have also gained on the back of higher copper prices. Copper futures climbed 3.77% to a near two-month high of $4.84 per pound after Freeport-McMoRan Inc. FCX declared force majeure at its Grasburg mine in Indonesia. Mining operations have been temporarily suspended since Sept. 8 following the sudden inflow of approximately 800,000 metric tons of wet material though the mine. Freeport now expects third quarter 2025 sales to be 4% lower for copper and 6% lower for gold than its previous estimates. Notably, the Grasberg minerals district in Indonesia is one of the world’s largest copper and gold deposits. Hudbay Minerals HBM recently announced the temporary suspension of operations at its Constancia mine in Peru due to protests. Even though the company said that this will not impact its 2025 output, it has led to supply concerns, boosting prices. 

This company is expected to post quarterly earnings of $0.57 per share in its upcoming report, which represents a year-over-year change of +111.1%. Revenues are expected to be $215.45 million, up 72.6% 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 Ero Copper, 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 ERO 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 >>>>

Ero Copper is part of the Zacks Mining - Non Ferrous industry. Energy Fuels (UUUU), another stock in the same industry, closed the last trading session 1.2% higher at $16.87. UUUU has returned 35.4% in the past month.

For Energy Fuels, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.08. This represents a change of -14.3% from what the company reported a year ago. Energy Fuels 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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