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Amerigo Resources (ARREF) Gains As Market Dips: What You Should Know

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Amerigo Resources (ARREF - Free Report) closed the latest trading day at $1.11, indicating a +0.64% change from the previous session's end. This move outpaced the S&P 500's daily loss of 1.11%. At the same time, the Dow lost 0.77%, and the tech-heavy Nasdaq lost 1.49%.

The the stock of copper and molybdenum mining company has fallen by 10.57% in the past month, lagging the Basic Materials sector's loss of 8.24% and the S&P 500's gain of 0.4%.

Market participants will be closely following the financial results of Amerigo Resources in its upcoming release. The company's upcoming EPS is projected at $0.04, signifying a 100% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $49.52 million, indicating a 16.65% upward movement from the same quarter last year.

ARREF's full-year Zacks Consensus Estimates are calling for earnings of $0.14 per share and revenue of $191.5 million. These results would represent year-over-year changes of +600% and +21.62%, respectively.

Investors might also notice recent changes to analyst estimates for Amerigo Resources. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. Currently, Amerigo Resources is carrying a Zacks Rank of #3 (Hold).

Looking at valuation, Amerigo Resources is presently trading at a Forward P/E ratio of 7.86. This valuation marks a discount compared to its industry's average Forward P/E of 20.64.

One should further note that ARREF currently holds a PEG ratio of 0.39. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Mining - Non Ferrous stocks are, on average, holding a PEG ratio of 0.94 based on yesterday's closing prices.

The Mining - Non Ferrous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 169, putting it in the bottom 33% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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