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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 $76.58, moving -0.01% from the previous trading session. This change lagged the S&P 500's 1.33% gain on the day. Meanwhile, the Dow gained 1.14%, and the Nasdaq, a tech-heavy index, added 2.94%.
Heading into today, shares of the chemicals company had gained 5.47% over the past month, outpacing the Basic Materials sector's gain of 4.49% and lagging the S&P 500's gain of 6.11% in that time.
Investors will be hoping for strength from SQM as it approaches its next earnings release, which is expected to be May 17, 2023. In that report, analysts expect SQM to post earnings of $3.50 per share. This would mark year-over-year growth of 25.45%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.92 billion, up 44.32% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $14.57 per share and revenue of $11.69 billion, which would represent changes of +6.51% and +9.13%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for SQM. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 5.54% higher. SQM is currently a Zacks Rank #3 (Hold).
Digging into valuation, SQM currently has a Forward P/E ratio of 5.26. For comparison, its industry has an average Forward P/E of 7.48, which means SQM is trading at a discount to the group.
Also, we should mention that SQM has a PEG ratio of 0.36. 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. Fertilizers stocks are, on average, holding a PEG ratio of 1.01 based on yesterday's closing prices.
The Fertilizers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 236, which puts it in the bottom 7% 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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SQM (SQM) Stock Sinks As Market Gains: What You Should Know
SQM (SQM - Free Report) closed the most recent trading day at $76.58, moving -0.01% from the previous trading session. This change lagged the S&P 500's 1.33% gain on the day. Meanwhile, the Dow gained 1.14%, and the Nasdaq, a tech-heavy index, added 2.94%.
Heading into today, shares of the chemicals company had gained 5.47% over the past month, outpacing the Basic Materials sector's gain of 4.49% and lagging the S&P 500's gain of 6.11% in that time.
Investors will be hoping for strength from SQM as it approaches its next earnings release, which is expected to be May 17, 2023. In that report, analysts expect SQM to post earnings of $3.50 per share. This would mark year-over-year growth of 25.45%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.92 billion, up 44.32% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $14.57 per share and revenue of $11.69 billion, which would represent changes of +6.51% and +9.13%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for SQM. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 5.54% higher. SQM is currently a Zacks Rank #3 (Hold).
Digging into valuation, SQM currently has a Forward P/E ratio of 5.26. For comparison, its industry has an average Forward P/E of 7.48, which means SQM is trading at a discount to the group.
Also, we should mention that SQM has a PEG ratio of 0.36. 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. Fertilizers stocks are, on average, holding a PEG ratio of 1.01 based on yesterday's closing prices.
The Fertilizers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 236, which puts it in the bottom 7% 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.