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Why Amerigo Resources (ARREF) Dipped More Than Broader Market Today

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Amerigo Resources (ARREF - Free Report) closed at $1.10 in the latest trading session, marking a -0.9% move from the prior day. This change lagged the S&P 500's 0.5% loss on the day. At the same time, the Dow added 0.5%, and the tech-heavy Nasdaq lost 1.28%.

Coming into today, shares of the copper and molybdenum mining company had lost 5.13% in the past month. In that same time, the Basic Materials sector lost 1.23%, while the S&P 500 gained 0.1%.

The upcoming earnings release of Amerigo Resources will be of great interest to investors. On that day, Amerigo Resources is projected to report earnings of $0.05 per share, which would represent year-over-year growth of 350%. Meanwhile, our latest consensus estimate is calling for revenue of $48.77 million, up 52.22% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates project earnings of $0.17 per share and a revenue of $193.3 million, demonstrating changes of +750% and +22.76%, respectively, from the preceding year.

Investors should also note any recent changes to analyst estimates for Amerigo Resources. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 6.25% upward. Currently, Amerigo Resources is carrying a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that Amerigo Resources has a Forward P/E ratio of 6.53 right now. This expresses a discount compared to the average Forward P/E of 15.97 of its industry.

Also, we should mention that ARREF has a PEG ratio of 0.33. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Mining - Non Ferrous stocks are, on average, holding a PEG ratio of 0.7 based on yesterday's closing prices.

The Mining - Non Ferrous industry is part of the Basic Materials sector. With its current Zacks Industry Rank of 52, this industry ranks in the top 21% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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