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SQM (SQM) Dips More Than Broader Markets: What You Should Know
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SQM (SQM - Free Report) closed at $74.53 in the latest trading session, marking a -0.68% move from the prior day. This change lagged the S&P 500's 0.02% loss on the day. Elsewhere, the Dow gained 0.23%, while the tech-heavy Nasdaq lost 0.12%.
Coming into today, shares of the chemicals company had gained 3.92% in the past month. In that same time, the Basic Materials sector gained 9.06%, while the S&P 500 gained 5.14%.
SQM will be looking to display strength as it nears its next earnings release, which is expected to be August 16, 2023. On that day, SQM is projected to report earnings of $2.67 per share, which would represent a year-over-year decline of 11.3%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.38 billion, down 8.49% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.49 per share and revenue of $10.29 billion. These totals would mark changes of -8.7% and -3.93%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for SQM. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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 0.29% higher. SQM currently has a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that SQM has a Forward P/E ratio of 6.01 right now. For comparison, its industry has an average Forward P/E of 11.29, which means SQM is trading at a discount to the group.
Also, we should mention that SQM has a PEG ratio of 0.41. 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. Fertilizers stocks are, on average, holding a PEG ratio of 1.4 based on yesterday's closing prices.
The Fertilizers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 244, which puts it in the bottom 4% of all 250+ industries.
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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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SQM (SQM) Dips More Than Broader Markets: What You Should Know
SQM (SQM - Free Report) closed at $74.53 in the latest trading session, marking a -0.68% move from the prior day. This change lagged the S&P 500's 0.02% loss on the day. Elsewhere, the Dow gained 0.23%, while the tech-heavy Nasdaq lost 0.12%.
Coming into today, shares of the chemicals company had gained 3.92% in the past month. In that same time, the Basic Materials sector gained 9.06%, while the S&P 500 gained 5.14%.
SQM will be looking to display strength as it nears its next earnings release, which is expected to be August 16, 2023. On that day, SQM is projected to report earnings of $2.67 per share, which would represent a year-over-year decline of 11.3%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.38 billion, down 8.49% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.49 per share and revenue of $10.29 billion. These totals would mark changes of -8.7% and -3.93%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for SQM. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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 0.29% higher. SQM currently has a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that SQM has a Forward P/E ratio of 6.01 right now. For comparison, its industry has an average Forward P/E of 11.29, which means SQM is trading at a discount to the group.
Also, we should mention that SQM has a PEG ratio of 0.41. 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. Fertilizers stocks are, on average, holding a PEG ratio of 1.4 based on yesterday's closing prices.
The Fertilizers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 244, which puts it in the bottom 4% of all 250+ industries.
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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.