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SQM (SQM) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, SQM (SQM - Free Report) closed at $69, marking a +1.92% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.05%. At the same time, the Dow lost 0.17%, and the tech-heavy Nasdaq gained 6.02%.
Heading into today, shares of the chemicals company had lost 7.72% over the past month, lagging the Basic Materials sector's loss of 0.73% and the S&P 500's gain of 1.18% 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 $3.34 per share. This would mark year-over-year growth of 19.71%. Meanwhile, our latest consensus estimate is calling for revenue of $2.67 billion, up 32.34% from the prior-year quarter.
SQM's full-year Zacks Consensus Estimates are calling for earnings of $12.53 per share and revenue of $10.22 billion. These results would represent year-over-year changes of -8.41% and -4.61%, respectively.
It is also important to note the recent changes to analyst estimates for SQM. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 has moved 13.8% lower within the past month. SQM is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, SQM is currently trading at a Forward P/E ratio of 5.4. This represents a discount compared to its industry's average Forward P/E of 7.18.
We can also see that SQM currently has a PEG ratio of 0.37. 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 239, which puts it in the bottom 6% 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) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, SQM (SQM - Free Report) closed at $69, marking a +1.92% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.05%. At the same time, the Dow lost 0.17%, and the tech-heavy Nasdaq gained 6.02%.
Heading into today, shares of the chemicals company had lost 7.72% over the past month, lagging the Basic Materials sector's loss of 0.73% and the S&P 500's gain of 1.18% 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 $3.34 per share. This would mark year-over-year growth of 19.71%. Meanwhile, our latest consensus estimate is calling for revenue of $2.67 billion, up 32.34% from the prior-year quarter.
SQM's full-year Zacks Consensus Estimates are calling for earnings of $12.53 per share and revenue of $10.22 billion. These results would represent year-over-year changes of -8.41% and -4.61%, respectively.
It is also important to note the recent changes to analyst estimates for SQM. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 has moved 13.8% lower within the past month. SQM is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, SQM is currently trading at a Forward P/E ratio of 5.4. This represents a discount compared to its industry's average Forward P/E of 7.18.
We can also see that SQM currently has a PEG ratio of 0.37. 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 239, which puts it in the bottom 6% 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.