Nexa Resources S.A. (NEXA) shares rallied 5.1% in the last trading session to close at $5.37. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 6.5% gain over the past four weeks.
Nexa Resources’ shares have gained on the back of a recent surge in metal prices. Zinc prices have surged to above $3,000 per ton, triggered by supply concerns, in contrast to the year-to-date losses. Copper prices are above $5 per pound as mine disruptions in Chile and Indonesia have fueled supply concerns. Silver, meanwhile, is at around $49 per ounce, backed by heightened political and economic uncertainties and bets on U.S rate cuts.
This company is expected to post quarterly earnings of $0.10 per share in its upcoming report, which represents a year-over-year change of +400%. Revenues are expected to be $699.31 million, down 1.4% 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 Nexa Resources, 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 NEXA 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 >>>>
Nexa Resources belongs to the Zacks Mining - Miscellaneous industry. Another stock from the same industry, McEwen (MUX), closed the last trading session 6% higher at $18.78. Over the past month, MUX has returned 30.6%.
McEwen's consensus EPS estimate for the upcoming report has changed +95.2% over the past month to $0.31. Compared to the company's year-ago EPS, this represents a change of +875%. McEwen currently boasts a Zacks Rank of #2 (Buy).
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Nexa Resources S.A. (NEXA): Free Stock Analysis Report McEwen Inc. (MUX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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