Back to top

Image: Bigstock

Why Earnings Season Could Be Great for Sociedad Quimica (SQM)

Read MoreHide Full Article

Investors are always looking for stocks that are poised to beat at earnings season and Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.

That is because Sociedad Quimica is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for SQM in this report.

In fact, the Most Accurate Estimate for the current quarter is currently at 42 cents per share for SQM, compared to a broader Zacks Consensus Estimate of 41 cents per share. This suggests that analysts have very recently bumped up their estimates for SQM, giving the stock a Zacks Earnings ESP of +1.84% heading into earnings season.

Why is this Important?

A positive reading for the Zacks Earnings ESP has proven to be very powerful in producing both positive surprises, and outperforming the market. Our recent 10-year backtest shows that stocks that have a positive Earnings ESP and a Zacks Rank #3 (Hold) or better show a positive surprise nearly 70% of the time, and have returned over 28% on average in annual returns (see more Top Earnings ESP stocks here).

Given that SQM has a Zacks Rank #3 and an ESP in positive territory, investors might want to consider this stock ahead of earnings. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Clearly, recent earnings estimate revisions suggest that good things are ahead for Sociedad Quimica, and that a beat might be in the cards for the upcoming report.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>

 


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Sociedad Quimica y Minera S.A. (SQM) - free report >>

Published in