Ivanhoe Electric (IE) Moves 8.7% Higher: Will This Strength Last?

Ivanhoe Electric (IE) shares ended the last trading session 8.7% higher at $9.17. 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 14.7% gain over the past four weeks.

Ivanhoe Electric’s shares gained since the company announced the completion of the Preliminary Feasibility Study for its Santa Cruz Copper Project in Arizona. The completion of the Study is a key milestone as this is a step forward for the company to secure long-term project financing to move the Santa Cruz project toward development.

The Study underlines advanced engineering design, covering all stages from extraction to processing, ensuring project bankability and readiness for financing. According to the development plan, construction is slated to begin in the first half of 2026, with the goal of achieving first copper cathode production by 2028. 

This mineral exploration company is expected to post quarterly loss of $0.13 per share in its upcoming report, which represents a year-over-year change of +66.7%. Revenues are expected to be $0.74 million, up 37% 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 Ivanhoe Electric, 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 IE 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 >>>>

Ivanhoe Electric is a member of the Zacks Mining - Miscellaneous industry. One other stock in the same industry, Alpha Metallurgical (AMR), finished the last trading session 4.7% lower at $99.46. AMR has returned -13.3% over the past month.

For Alpha Metallurgical, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$1.6. This represents a change of -135.6% from what the company reported a year ago. Alpha Metallurgical currently has 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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