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Strength Seen in HudBay Minerals (HBM): Can Its 5.0% Jump Turn into More Strength?

Zacks Equity Research
·2 min read

HudBay Minerals (HBM) shares rallied 5% in the last trading session to close at $5.85. 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 4.3% gain over the past four weeks.

HBM’s rally appears to reflect the surge in copper prices to their highest level in more than six months on improved demand prospects after China, a top consumer, reopened its borders and relaxed quarantine for incoming travelers. The move, which marked a significant shift away from China’s zero-COVID approach, raised expectations of higher demand for the widely-used industrial metal.

This mining company is expected to post quarterly earnings of $0.08 per share in its upcoming report, which represents a year-over-year change of -38.5%. Revenues are expected to be $401.11 million, down 5.7% 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.

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For HudBay Minerals, 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 HBM 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 >>>>

HudBay Minerals is part of the Zacks Mining - Miscellaneous industry. Silvercorp (SVM), another stock in the same industry, closed the last trading session 2.1% lower at $3.32. SVM has returned 19.8% in the past month.

For Silvercorp , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.06. This represents a change of -14.3% from what the company reported a year ago. Silvercorp currently has a Zacks Rank of #3 (Hold).

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HudBay Minerals Inc (HBM) : Free Stock Analysis Report

Silvercorp Metals Inc. (SVM) : Free Stock Analysis Report

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Zacks Investment Research