According to StockCharts, the stock’s Relative Strength Index has been trending downward over the last two weeks to a reading of 36.32. The Relative Strength Index reading of 30 indicates that a stock has been oversold.
Shares of Uranium Energy Corp are off 13.21% since Jan. 1. Over the last month, the stock has plunged 19.30 over the last 30 days. Over the last 52 weeks, the stock is off 25.33% compared to the 7.24% return from the S&P 500. (See also: Why Uranium Won’t Recover Anytime Soon.)
The stock’s 52-week high is $1.47, while its 52-week low is $0.65.
According to Yahoo! Finance, its one-year stock target price is $2.32. That represents potential upside of 157.7%. Three analysts have a consensus “Buy” rating with the higher end of the forecast spectrum sits at $2.70.
The last notable rating came from Haywood Securities in June 2015, when an analyst set a “Hold” rating and a $4.20 price target. That price target has been revised downward to $2.10.
The stock closed at $0.92 per share on Friday, Oct. 7. That is 10.6% below its 50-day moving average. The stock is trading a penny higher than its 50-day moving average.
The company’s next quarterly earnings report date is Oct. 11, 2016.
Uranium Energy Corp. has been under pressure in recent years due to weakening demand for nuclear power generation. The company is involved in the exploration, extraction, and processing of uranium concentrates in the United States and Paraguay. Uranium prices have remained stubbornly low for the producer as nations turn away from nuclear, despite lofty anti-carbon fuel mandates.
Uranium prices are hovering at an 11-year low due to growing oversupply on the markets. At the end of September, uranium prices fell to $23.75 per pound. Prices are off more than 30% this year, and uranium has been the worst performing energy commodity of 2016.
Prices have plunged from the $73 per pound that came one month before the reactor meltdown in Fukushima, Japan (see also: Uranium Stocks Rebounding.)
According to the International Atomic Energy Agency (IAEA), global nuclear capacity will expand in the next two decades, but it projects that prices will remain weak due to growing uncertainties tied to new facility production and existing licenses.
Russian ARMZ Uranium Holding company's official Marina Liborakina said in September that it could take until after 2020 before the industry sees a price reversal. Until then, companies will be engaged in cost-cutting and are unlikely to expand production and exploration (see also: Top 3 Nuclear Stocks of 2016.)