Lundin Mining (LUNMF) shares ended the last trading session 6.4% higher at $8.47. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 14.1% loss over the past four weeks.
Lundin Mining got a boost on the back of a rise in gold and copper prices. Gold is currently at around $3,327 per ounce, gaining 27% so far this year. Copper futures rose to around $4.90 per pound, marking a three-week high as hopes for a de-escalation in US-China trade tensions boosted investor sentiment.
This base metals mining company is expected to post quarterly earnings of $0.11 per share in its upcoming report, which represents a year-over-year change of +83.3%. Revenues are expected to be $853.48 million, down 8.9% 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 Lundin, the consensus EPS estimate for the quarter has been revised 13.4% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on LUNMF 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 >>>>
Lundin is a member of the Zacks Mining - Non Ferrous industry. One other stock in the same industry, Ero Copper Corp. (ERO), finished the last trading session 5.9% higher at $11.89. ERO has returned -19.7% over the past month.
Ero Copper's consensus EPS estimate for the upcoming report has changed +94.2% over the past month to $0.22. Compared to the company's year-ago EPS, this represents a change of +37.5%. Ero Copper currently boasts a Zacks Rank of #3 (Hold).
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Lundin Mining Corp. (LUNMF): Free Stock Analysis Report Ero Copper Corp. (ERO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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