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NuScale Power (SMR) Soars 17.5%: Is Further Upside Left in the Stock?
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NuScale Power Corporation (SMR - Free Report) shares rallied 17.5% in the last trading session to close at $15.34. 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 55.1% gain over the past four weeks.
The increase in share price can be attributed to the swelling demand for energy especially safe and clean energy.
Last week, President Joe Biden signed a new bill that supports the development of advanced nuclear technology by lowering processing fees and licensing times. This is likely to benefit NuScale.
Based in Portland, OR, NuScale specializes in providing innovative advanced nuclear small modular reactor (“SMR”) technology. NuScale has the first-mover advantage in the commercial SMR development space as it is the first and only company to have received U.S. Nuclear Regulatory Commission design approval and certification. The efforts to commercialize its SMR technology bode well.
Energy demand is soaring owing to higher power usage by data centers and AI, major industrial projects, transportation and utility sectors. This is likely to drive the company’s top-line performance, going ahead.
The company is also focusing on cost discipline. In January 2024, it announced a cost reduction plan that will likely generate $50-$60 million in annualized savings, beginning in the second quarter of 2024.
NuScale ended the first quarter with cash and equivalents (including restricted cash of $5.1 million) of $137.1 million and no debt.
This company is expected to post quarterly loss of $0.13 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $1.43 million, down 75.3% 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 NuScale Power, the consensus EPS estimate for the quarter has been revised 21.4% 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 SMR going forward to see if this recent jump can turn into more strength down the road.
NuScale Power belongs to the Zacks Electronics - Power Generation industry. Another stock from the same industry, Generac Holdings (GNRC - Free Report) , closed the last trading session 3.7% higher at $153.94. Over the past month, GNRC has returned 9%.
For Generac Holdings, the consensus EPS estimate for the upcoming report has changed -0.6% over the past month to $1.24. This represents a change of +14.8% from what the company reported a year ago. Generac Holdings currently has a Zacks Rank of #2 (Buy).
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NuScale Power (SMR) Soars 17.5%: Is Further Upside Left in the Stock?
NuScale Power Corporation (SMR - Free Report) shares rallied 17.5% in the last trading session to close at $15.34. 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 55.1% gain over the past four weeks.
The increase in share price can be attributed to the swelling demand for energy especially safe and clean energy.
Last week, President Joe Biden signed a new bill that supports the development of advanced nuclear technology by lowering processing fees and licensing times. This is likely to benefit NuScale.
Based in Portland, OR, NuScale specializes in providing innovative advanced nuclear small modular reactor (“SMR”) technology. NuScale has the first-mover advantage in the commercial SMR development space as it is the first and only company to have received U.S. Nuclear Regulatory Commission design approval and certification. The efforts to commercialize its SMR technology bode well.
Energy demand is soaring owing to higher power usage by data centers and AI, major industrial projects, transportation and utility sectors. This is likely to drive the company’s top-line performance, going ahead.
The company is also focusing on cost discipline. In January 2024, it announced a cost reduction plan that will likely generate $50-$60 million in annualized savings, beginning in the second quarter of 2024.
NuScale ended the first quarter with cash and equivalents (including restricted cash of $5.1 million) of $137.1 million and no debt.
This company is expected to post quarterly loss of $0.13 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $1.43 million, down 75.3% 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 NuScale Power, the consensus EPS estimate for the quarter has been revised 21.4% 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 SMR going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
NuScale Power belongs to the Zacks Electronics - Power Generation industry. Another stock from the same industry, Generac Holdings (GNRC - Free Report) , closed the last trading session 3.7% higher at $153.94. Over the past month, GNRC has returned 9%.
For Generac Holdings, the consensus EPS estimate for the upcoming report has changed -0.6% over the past month to $1.24. This represents a change of +14.8% from what the company reported a year ago. Generac Holdings currently has a Zacks Rank of #2 (Buy).