This story originally appeared on Zacks

Hut 8 Mining (HUT) closed at $6.07 in the latest trading session, marking a -1.78% move from the prior day. This change lagged the S&P 500’s 0.97% loss on the day. At the same time, the Dow lost 0.96%, and the tech-heavy Nasdaq gained 0.23%.

Coming into today, shares of the crypto currency mining company had lost 24.45% in the past month. In that same time, the Business Services sector lost 18.39%, while the S&P 500 lost 0.78%.

Hut 8 Mining will be looking to display strength as it nears its next earnings release.

Investors might also notice recent changes to analyst estimates for Hut 8 Mining. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. The Zacks Consensus EPS estimate has moved 5.2% higher within the past month. Hut 8 Mining is holding a Zacks Rank of #1 (Strong Buy) right now.

In terms of valuation, Hut 8 Mining is currently trading at a Forward P/E ratio of 6.79. For comparison, its industry has an average Forward P/E of 22.68, 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 industry currently has a Zacks Industry Rank of 172, which puts it in the bottom 33% 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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