We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
SQM (SQM) Moves 5.6% Higher: Will This Strength Last?
Read MoreHide Full Article
SQM (SQM - Free Report) shares ended the last trading session 5.6% higher at $53.85. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 1% gain over the past four weeks.
SQM’s shares are heading higher in anticipation of strong second-quarter results. The company’s results are expected to be supported by higher global demand and prices for fertilizers on the back of healthy grower economics as well as favorable trends in the lithium market underpinned by strong electric vehicle sales and improving prices. Higher sales volumes and prices across its lithium and specialty plant nutrition businesses are expected to drive its top line and margins in the second quarter.
This chemicals company is expected to post quarterly earnings of $0.32 per share in its upcoming report, which represents a year-over-year change of +68.4%. Revenues are expected to be $543.03 million, up 18.4% 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 SQM, 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 SQM going forward to see if this recent jump can turn into more strength down the road.
Image: Bigstock
SQM (SQM) Moves 5.6% Higher: Will This Strength Last?
SQM (SQM - Free Report) shares ended the last trading session 5.6% higher at $53.85. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 1% gain over the past four weeks.
SQM’s shares are heading higher in anticipation of strong second-quarter results. The company’s results are expected to be supported by higher global demand and prices for fertilizers on the back of healthy grower economics as well as favorable trends in the lithium market underpinned by strong electric vehicle sales and improving prices. Higher sales volumes and prices across its lithium and specialty plant nutrition businesses are expected to drive its top line and margins in the second quarter.
This chemicals company is expected to post quarterly earnings of $0.32 per share in its upcoming report, which represents a year-over-year change of +68.4%. Revenues are expected to be $543.03 million, up 18.4% 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 SQM, 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 SQM going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>