SIGMA LITHIUM (SGML) Surges 29.9%: Is This an Indication of Further Gains?

Sigma Lithium Corporation (SGML) shares rallied 29.9% in the last trading session to close at $16.37. 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 7.2% loss over the past four weeks.

Shares of Sigma Lithium surged after the company updated its production guidance to reflect ongoing operational optimization and mining scale-up. It now expects 12-month annualized forward production of 240,000 tonnes and 24-month annualized forward production of 520,000 tonnes.

This company is expected to post quarterly loss of $0.12 per share in its upcoming report, which represents a year-over-year change of -50%. Revenues are expected to be $35.9 million, down 25.3% 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 SIGMA LITHIUM, 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 SGML 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 >>>>

SIGMA LITHIUM is a member of the Zacks Mining - Miscellaneous industry. One other stock in the same industry, McEwen (MUX), finished the last trading session 0.4% higher at $27.09. MUX has returned -3.6% over the past month.

McEwen's consensus EPS estimate for the upcoming report has changed +30% over the past month to $0.25. Compared to the company's year-ago EPS, this represents a change of +266.7%. McEwen currently boasts a Zacks Rank of #2 (Buy).

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

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