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Hut 8 Mining (HUT) Gains But Lags Market: What You Should Know

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Hut 8 Mining (HUT - Free Report) closed at $3.92 in the latest trading session, marking a +0.51% move from the prior day. This change lagged the S&P 500's 0.57% gain on the day. Meanwhile, the Dow gained 0.7%, and the Nasdaq, a tech-heavy index, added 0.08%.

Coming into today, shares of the crypto currency mining company had lost 33.9% in the past month. In that same time, the Business Services sector lost 7.15%, while the S&P 500 lost 5.26%.

Hut 8 Mining will be looking to display strength as it nears its next earnings release. In that report, analysts expect Hut 8 Mining to post earnings of $0.11 per share. This would mark year-over-year growth of 37.5%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $46.37 million, up 92.17% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.54 per share and revenue of $210.63 million. These totals would mark changes of +1700% and +53.33%, respectively, from last year.

Any recent changes to analyst estimates for Hut 8 Mining should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 23.4% lower. Hut 8 Mining is currently sporting a Zacks Rank of #4 (Sell).

Looking at its valuation, Hut 8 Mining is holding a Forward P/E ratio of 7.22. For comparison, its industry has an average Forward P/E of 20.29, which means Hut 8 Mining is trading at a discount to the group.

The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 168, putting it in the bottom 34% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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