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SQM (SQM) Stock Sinks As Market Gains: What You Should Know
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SQM (SQM - Free Report) closed the most recent trading day at $73.36, moving -0.61% from the previous trading session. This change lagged the S&P 500's 0.36% gain on the day. Elsewhere, the Dow gained 0.01%, while the tech-heavy Nasdaq added 1.91%.
Coming into today, shares of the chemicals company had lost 12.56% in the past month. In that same time, the Basic Materials sector lost 3.1%, while the S&P 500 gained 1.24%.
Investors will be hoping for strength from SQM as it approaches its next earnings release. The company is expected to report EPS of $3.88, up 39.07% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.92 billion, up 44.32% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $14.53 per share and revenue of $11.69 billion, which would represent changes of +6.21% and +9.13%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for SQM. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 5.29% higher. SQM is currently sporting a Zacks Rank of #5 (Strong Sell).
Investors should also note SQM's current valuation metrics, including its Forward P/E ratio of 5.08. Its industry sports an average Forward P/E of 7.23, so we one might conclude that SQM is trading at a discount comparatively.
We can also see that SQM currently has a PEG ratio of 0.35. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Fertilizers industry currently had an average PEG ratio of 0.94 as of yesterday's close.
The Fertilizers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 222, which puts it in the bottom 12% 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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SQM (SQM) Stock Sinks As Market Gains: What You Should Know
SQM (SQM - Free Report) closed the most recent trading day at $73.36, moving -0.61% from the previous trading session. This change lagged the S&P 500's 0.36% gain on the day. Elsewhere, the Dow gained 0.01%, while the tech-heavy Nasdaq added 1.91%.
Coming into today, shares of the chemicals company had lost 12.56% in the past month. In that same time, the Basic Materials sector lost 3.1%, while the S&P 500 gained 1.24%.
Investors will be hoping for strength from SQM as it approaches its next earnings release. The company is expected to report EPS of $3.88, up 39.07% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.92 billion, up 44.32% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $14.53 per share and revenue of $11.69 billion, which would represent changes of +6.21% and +9.13%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for SQM. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 5.29% higher. SQM is currently sporting a Zacks Rank of #5 (Strong Sell).
Investors should also note SQM's current valuation metrics, including its Forward P/E ratio of 5.08. Its industry sports an average Forward P/E of 7.23, so we one might conclude that SQM is trading at a discount comparatively.
We can also see that SQM currently has a PEG ratio of 0.35. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Fertilizers industry currently had an average PEG ratio of 0.94 as of yesterday's close.
The Fertilizers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 222, which puts it in the bottom 12% 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.