Back to top

Image: Bigstock

Nexa Resources S.A. (NEXA) Gains As Market Dips: What You Should Know

Read MoreHide Full Article

Nexa Resources S.A. (NEXA - Free Report) closed at $9.49 in the latest trading session, marking a +1.82% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.24%.

Heading into today, shares of the company had gained 15.49% over the past month, outpacing the Basic Materials sector's loss of 3.15% and the S&P 500's loss of 2.12% in that time.

Investors will be hoping for strength from NEXA as it approaches its next earnings release. On that day, NEXA is projected to report earnings of $0.49 per share, which would represent year-over-year growth of 390%. Our most recent consensus estimate is calling for quarterly revenue of $603.92 million, up 12.29% from the year-ago period.

NEXA's full-year Zacks Consensus Estimates are calling for earnings of $2.01 per share and revenue of $2.53 billion. These results would represent year-over-year changes of +147.63% and +29.92%, respectively.

Any recent changes to analyst estimates for NEXA should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 4.42% higher. NEXA is currently a Zacks Rank #1 (Strong Buy).

Investors should also note NEXA's current valuation metrics, including its Forward P/E ratio of 4.64. Its industry sports an average Forward P/E of 9.44, so we one might conclude that NEXA is trading at a discount comparatively.

The Mining - Miscellaneous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 193, which puts it in the bottom 25% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


See More Zacks Research for These Tickers


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


Nexa Resources S.A. (NEXA) - free report >>

Published in