$USAR — Caution ahead of earnings 📉
On November 9, USA Rare Earth ($USAR ) will report its earnings, and honestly, I’m not too optimistic about the outlook going into this event.
Several factors could lead to significant volatility and downward pressure on the stock price. I wouldn’t rule out a major correction, even one as extreme as 5%–20%, although of course, such a move isn’t guaranteed.
What concerns me?
- Leadership change: This will be the first report under CEO Thras Moraitis. The market will be watching for any signs of how the strategic plan is being executed.
- Financial situation: The company still has significant funding needs to develop its infrastructure, especially its projects in South Carolina.
- Previous results: Last quarter, revenue already fell short of expectations, and the market reacted negatively. In addition, consensus estimates call for EPS of approximately -$0.19.
- Market expectations: Any signs of operational delays, higher capital expenditures, or funding difficulties could increase selling pressure.
Personally, I prefer to stay on the sidelines during events like this. It doesn’t make much sense to expose yourself to volatility that could send the price in either direction within minutes xd.
If you decide to trade, do so at your own risk and manage your capital appropriately.
Sometimes, not entering a trade is a good trade too. :v
#EntregaDeResultados
On November 9, USA Rare Earth ($USAR ) will report its earnings, and honestly, I’m not too optimistic about the outlook going into this event.
Several factors could lead to significant volatility and downward pressure on the stock price. I wouldn’t rule out a major correction, even one as extreme as 5%–20%, although of course, such a move isn’t guaranteed.
What concerns me?
- Leadership change: This will be the first report under CEO Thras Moraitis. The market will be watching for any signs of how the strategic plan is being executed.
- Financial situation: The company still has significant funding needs to develop its infrastructure, especially its projects in South Carolina.
- Previous results: Last quarter, revenue already fell short of expectations, and the market reacted negatively. In addition, consensus estimates call for EPS of approximately -$0.19.
- Market expectations: Any signs of operational delays, higher capital expenditures, or funding difficulties could increase selling pressure.
Personally, I prefer to stay on the sidelines during events like this. It doesn’t make much sense to expose yourself to volatility that could send the price in either direction within minutes xd.
If you decide to trade, do so at your own risk and manage your capital appropriately.
Sometimes, not entering a trade is a good trade too. :v
#EntregaDeResultados