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Methanex (MEOH) Gains As Market Dips: What You Should Know

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In the latest trading session, Methanex (MEOH - Free Report) closed at $55.33, marking a +0.29% move from the previous day. This change outpaced the S&P 500's 0.06% loss on the day. At the same time, the Dow added 0.72%, and the tech-heavy Nasdaq gained 0.64%.

Prior to today's trading, shares of the methanol supplier had lost 0.58% over the past month. This has lagged the Basic Materials sector's gain of 5.04% and the S&P 500's gain of 0.17% in that time.

Methanex will be looking to display strength as it nears its next earnings release, which is expected to be April 27, 2022. On that day, Methanex is projected to report earnings of $2.09 per share, which would represent year-over-year growth of 95.33%. Meanwhile, our latest consensus estimate is calling for revenue of $1.17 billion, up 15.22% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.61 per share and revenue of $4.22 billion, which would represent changes of -6.97% and -4.52%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Methanex. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 remained stagnant within the past month. Methanex is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Methanex is holding a Forward P/E ratio of 9.83. For comparison, its industry has an average Forward P/E of 11.94, which means Methanex is trading at a discount to the group.

The Chemical - Diversified industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 168, which puts it in the bottom 34% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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