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Eos Energy Enterprises (EOSE) Moves 19.7% Higher: Will This Strength Last?

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Eos Energy Enterprises, Inc. (EOSE - Free Report) shares soared 19.7% in the last trading session to close at $5.05. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 1.4% gain over the past four weeks.

Eos Energy Enterprises gained on the news that it has signed a memorandum of understanding with Frontier Power Ltd., a UK-based leading developer of innovative energy solutions with expertise spanning electricity interconnectors, offshore wind transmission, offshore wind generation and energy storage.???This agreement, for a five GWh energy storage framework, marks Eos' entry into the U.K. market.  

Frontier plans to submit multiple bids utilizing Eos’ Znyth battery technology in the first application window of Ofgem’s new long-duration energy storage (LDES) cap and floor scheme. 

Eos and Frontier plan to extend the partnership globally to new international markets. If significant LDES project volumes using Eos’ technology come to fruition, it could pave the way for developing local manufacturing in the United Kingdom.

This company is expected to post quarterly loss of $0.19 per share in its upcoming report, which represents a year-over-year change of +17.4%. Revenues are expected to be $8.55 million, up 29.5% 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 Eos Energy Enterprises, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on EOSE 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). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Eos Energy Enterprises belongs to the Zacks Industrial Services industry. Another stock from the same industry, Hudson Technologies (HDSN - Free Report) , closed the last trading session 2.1% lower at $5.63. Over the past month, HDSN has returned -4.6%.

For Hudson Tech, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.01. This represents a change of -95% from what the company reported a year ago. Hudson Tech currently has a Zacks Rank of #4 (Sell).


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