Back to top

Image: Bigstock

Alto Ingredients (ALTO) Dips More Than Broader Markets: What You Should Know

Read MoreHide Full Article

In the latest trading session, Alto Ingredients (ALTO - Free Report) closed at $4.82, marking a -1.83% move from the previous day. This change lagged the S&P 500's daily loss of 0.91%.

Prior to today's trading, shares of the ethanol producer had gained 7.68% over the past month. This has outpaced the Consumer Discretionary sector's gain of 0.91% and the S&P 500's gain of 0.01% in that time.

ALTO will be looking to display strength as it nears its next earnings release. On that day, ALTO is projected to report earnings of $0.10 per share, which would represent a year-over-year decline of 58.33%. Our most recent consensus estimate is calling for quarterly revenue of $273.53 million, up 33.61% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.45 per share and revenue of $1.08 billion. These totals would mark changes of +462.5% and +20.33%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for ALTO. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection remained stagnant. ALTO is currently a Zacks Rank #2 (Buy).

Looking at its valuation, ALTO is holding a Forward P/E ratio of 10.91. Its industry sports an average Forward P/E of 15.98, so we one might conclude that ALTO is trading at a discount comparatively.

The Consumer Products - Discretionary industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 104, which puts it in the top 41% 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.

To follow ALTO in the coming trading sessions, be sure to utilize

In-Depth Zacks Research for the Tickers Above

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

Alto Ingredients, Inc. (ALTO) - free report >>

Published in