Centrus Energy (LEU) Stock Jumps 8.4%: Will It Continue to Soar?

Centrus Energy Corp. (LEU) shares rallied 8.4% in the last trading session to close at $158.13. 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 57.6% gain over the past four weeks.

Centrus Energy gained as its business partner, Oklo Inc. OKLO, has been issued a Notice of Intent to Award (NOITA) by the Defense Logistics Agency Energy to provide clean, reliable power to the Eielson Air Force Base in Alaska.

The notice designated Oklo as the "apparent successful offeror" following a comprehensive evaluation process. Per the agreement, Oklo would design, build, own and operate the power plant, providing both electricity and heat to the Air Force base under a long-term power purchase agreement.

Centrus Energy has an existing memorandum of understanding with Oklo to supply High-Assay Low-Enriched Uranium (HALEU) fuel the latter’s Aurora reactors. If Oklo secures the award, it is expected to provide Centrus Energy with steady and reliable business.

This company is expected to post quarterly earnings of $0.71 per share in its upcoming report, which represents a year-over-year change of -62.4%. Revenues are expected to be $133.97 million, down 29.1% 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 Centrus Energy, the consensus EPS estimate for the quarter has been revised 6.8% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on LEU going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Centrus Energy is part of the Zacks Mining - Non Ferrous industry. Energy Fuels (UUUU), another stock in the same industry, closed the last trading session 0.9% higher at $5.41. UUUU has returned 18.6% in the past month.

Energy Fuels' consensus EPS estimate for the upcoming report has changed +20% over the past month to -$0.04. Compared to the company's year-ago EPS, this represents no change. Energy Fuels currently boasts a Zacks Rank of #4 (Sell).

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

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

Zacks Investment Research