Strength Seen in Ivanhoe Electric (IE): Can Its 7.9% Jump Turn into More Strength?

Ivanhoe Electric (IE) shares soared 7.9% in the last trading session to close at $10.84. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 11.5% gain over the past four weeks.

The company’s shares have 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 mineral exploration company is expected to post quarterly loss of $0.21 per share in its upcoming report, which represents a year-over-year change of +41.7%. Revenues are expected to be $1.07 million, up 59.7% 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 Ivanhoe Electric, 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 IE 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 >>>>

Ivanhoe Electric is part of the Zacks Mining - Miscellaneous industry. Nexa Resources S.A. (NEXA), another stock in the same industry, closed the last trading session 1.2% higher at $5.04. NEXA has returned 1.8% in the past month.

Nexa Resources' consensus EPS estimate for the upcoming report has changed +25% over the past month to $0.1. Compared to the company's year-ago EPS, this represents a change of +400%. Nexa Resources currently boasts a Zacks Rank of #3 (Hold).

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

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