Hut 8 (HUT) Surges 7.9%: Is This an Indication of Further Gains?

Hut 8 (HUT) shares soared 7.9% in the last trading session to close at $53.91. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 42.6% gain over the past four weeks.

Hut 8 retained its rally for the third straight day, driven by strengths in its vertically integrated, power-first platform that combines energy assets, digital infrastructure, and compute capabilities to support high-intensity workloads like Bitcoin mining and HPC. Its experienced, power-native team enables strategic site selection and efficient capital deployment, giving the company an edge over competitors that rely on traditional, slower data center development models.

The company’s innovation-driven infrastructure strategy further enhances its competitive position. It rapidly deploys customized, low-cost facilities, like the Salt Creek project built at just $0.3 million per MW, allowing swift monetization of energy assets. Hut 8 designs data centers that support both ASIC and GPU compute, ensuring long-term adaptability across emerging technologies. Proprietary software such as Reactor optimizes energy usage in real-time, reducing costs and increasing operational efficiency, reinforcing its leadership in power-intensive computing environments.

This crypto currency mining company is expected to post quarterly loss of $0.16 per share in its upcoming report, which represents a year-over-year change of +30.4%. Revenues are expected to be $58.1 million, up 32.8% 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 Hut 8, 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 HUT 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 >>>>

Hut 8 is part of the Zacks Financial - Miscellaneous Services industry. Qfin Holdings Inc. - Sponsored ADR (QFIN), another stock in the same industry, closed the last trading session 1.3% lower at $26.18. QFIN has returned -8% in the past month.

Qfin Holdings Inc. - Sponsored ADR's consensus EPS estimate for the upcoming report has changed -9% over the past month to $1.68. Compared to the company's year-ago EPS, this represents a change of -3.5%. Qfin Holdings Inc. - Sponsored ADR currently boasts a Zacks Rank of #5 (Strong Sell).

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

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