This story originally appeared on Zacks
SQM (SQM) closed the most recent trading day at $53.27, moving +1.02% from the previous trading session. This move outpaced the S&P 500’s daily gain of 0.52%. Meanwhile, the Dow lost 0.06%, and the Nasdaq, a tech-heavy index, added 0.37%.
Coming into today, shares of the chemicals company had gained 7.48% in the past month. In that same time, the Basic Materials sector lost 3.07%, while the S&P 500 lost 6.51%.
Wall Street will be looking for positivity from SQM as it approaches its next earnings report date. The company is expected to report EPS of $0.97, up 288% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.01 billion, up 97.06% from the prior-year quarter.
Any recent changes to analyst estimates for SQM should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 11.54% higher within the past month. SQM is currently sporting a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, SQM is holding a Forward P/E ratio of 13.37. Its industry sports an average Forward P/E of 7.62, so we one might conclude that SQM is trading at a premium comparatively.
We can also see that SQM currently has a PEG ratio of 0.33. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The Fertilizers industry currently had an average PEG ratio of 0.83 as of yesterday’s close.
The Fertilizers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 11, which puts it in the top 5% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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