Energy Fuels (UUUU) shares soared 9.4% in the last trading session to close at $19.7. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 42.5% gain over the past four weeks.
Energy Fuels shares have gained as an analyst at B. Riley recently raised the target price from $11 to $22. The stock also got a boost, supported by China’s decision to tighten export controls on rare earths and related materials in an effort to “safeguard national security.”
China currently dominates the rare earth market, accounting for roughly 70% of global mining and 90% of processing capacity. Under the new rules, foreign entities must obtain government licenses to export products containing even trace amounts of rare earths and disclose their intended use.
These developments have boosted sentiment around U.S. producers like Energy Fuels, which is expanding its rare earth capabilities. Leveraging its White Mesa Mill and existing expertise, facilities and permits, the company is producing high-purity separated neodymium-praseodymium (NdPr) oxide at commercial scale from monazite, a low-cost mineral feedstock and byproduct of heavy mineral sand mining. Energy Fuels is also piloting the separation of heavy rare earth elements, including samarium (Sm), dysprosium (Dy) and terbium (Tb) to strengthen its foothold in the critical materials space.
This uranium and vanadium miner and developer is expected to post quarterly loss of $0.08 per share in its upcoming report, which represents a year-over-year change of -14.3%. Revenues are expected to be $9.85 million, up 143.2% 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 Energy Fuels, 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 UUUU 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 >>>>
Energy Fuels is part of the Zacks Mining - Non Ferrous industry. Coeur Mining (CDE), another stock in the same industry, closed the last trading session 4.6% lower at $20.05. CDE has returned 40.6% in the past month.
For Coeur Mining, the consensus EPS estimate for the upcoming report has changed +26.8% over the past month to $0.24. This represents a change of +100% from what the company reported a year ago. Coeur Mining currently has a Zacks Rank of #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Energy Fuels Inc (UUUU): Free Stock Analysis Report Coeur Mining, Inc. (CDE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
