Strength Seen In Silica Holdings (SLCA): Can Its 9.1% Jump Turn Into More Strength?

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Silica Holdings (SLCA) shares ended the last trading session 9.1% higher at $15.42. 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 46.3% gain over the past four weeks.

SLCA’s rally appears to be largely driven by a surge in oil prices to their highest levels since 2008 amid supply concerns as the United States and European allies considered a ban on the imports of Russian oil in the wake of Russia's invasion of Ukraine. The company’s Oil & Gas segment is well placed to benefit as the strength in the WTI crude oil prices along with increases in consumer spending is expected to support an active well completions environment.

This commercial silica producer is expected to post quarterly loss of $0.13 per share in its upcoming report, which represents a year-over-year change of +51.9%. Revenues are expected to be $294.57 million, up 25.7% 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.

For Silica Holdings, the consensus EPS estimate for the quarter has been revised 27.8% 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 SLCA 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).

Silica Holdings belongs to the Zacks Mining - Miscellaneous industry. Another stock from the same industry, Teck Resources Ltd (TECK) , closed the last trading session 5.5% lower at $39.20. Over the past month, TECK has returned 24.9%.

For Teck Resources Ltd, the consensus EPS estimate for the upcoming report has changed +25% over the past month to $1.87. This represents a change of +289.6% from what the company reported a year ago. Teck Resources Ltd currently has a Zacks Rank of #1 (Strong Buy).

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