Ero Copper Stock Jumps 5.2%: Will It Continue to Soar?

Ero Copper Corp. ERO shares rallied 5.2% in the last trading session to close at $23.11. 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% gain over the past four weeks.

Ero Copper's share price has gained on the back of the surge in copper and gold prices. Copper futures for December delivery increased 3.33% in a day, closing at $4.64 per pound on Thursday as China implemented various stimulus measures to support economic growth. Copper prices have also been gaining after the Federal Reserve announced an aggressive interest cut of half a percentage point.

Gold price is currently around a record high of $2,670 per ounce as markets anticipate another rate cut in November. Risk of a broader conflict in the Middle East have also boosted prices.

This company is expected to post quarterly earnings of $0.48 per share in its upcoming report, which represents a year-over-year change of +166.7%. Revenues are expected to be $148.8 million, up 41.4% 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 Ero Copper, the consensus EPS estimate for the quarter has been revised 10.5% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on ERO 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).

Ero Copper belongs to the Zacks Mining - Non Ferrous industry. Another stock from the same industry, Lundin Mining LUNMF, closed the last trading session 4.2% higher at $10.75. Over the past month, LUNMF has returned 0.9%.

Lundin's consensus EPS estimate for the upcoming report has changed -8.7% over the past month to $0.21. Compared to the company's year-ago EPS, this represents a change of +90.9%. Lundin currently boasts a Zacks Rank of #3 (Hold).

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