Century Aluminum (CENX) shares rallied 6.4% in the last trading session to close at $26.09. 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 4.1% gain over the past four weeks.
CENX’s shares are moving higher as it is poised to benefit from higher domestic aluminum prices as a result of the 50% tariffs on aluminum imports, which would drive its revenues. The restart of the Mt. Holly smelter to bring it to full production will also boost aluminum production.
This aluminum producer is expected to post quarterly earnings of $0.88 per share in its upcoming report, which represents a year-over-year change of +91.3%. Revenues are expected to be $663.7 million, up 23.1% 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 Century, the consensus EPS estimate for the quarter has been revised 8.6% 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 CENX 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 >>>>
Century belongs to the Zacks Metal Products - Procurement and Fabrication industry. Another stock from the same industry, TriMas (TRS), closed the last trading session 0.5% lower at $39. Over the past month, TRS has returned 6%.
For TriMas, the consensus EPS estimate for the upcoming report has changed +1.8% over the past month to $0.57. This represents a change of +32.6% from what the company reported a year ago. TriMas currently has a Zacks Rank of #1 (Strong Buy).
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
