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Methanex (MEOH) Outpaces Stock Market Gains: What You Should Know

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Methanex (MEOH - Free Report) closed the most recent trading day at $39.74, moving +1.64% from the previous trading session. This change outpaced the S&P 500's 0.96% gain on the day. Elsewhere, the Dow gained 0.61%, while the tech-heavy Nasdaq lost 0.04%.

Coming into today, shares of the methanol supplier had lost 14.89% in the past month. In that same time, the Basic Materials sector lost 1.73%, while the S&P 500 lost 0.21%.

Investors will be hoping for strength from Methanex as it approaches its next earnings release. The company is expected to report EPS of $2.08, up 1286.67% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.2 billion, up 47.35% from the prior-year quarter.

MEOH's full-year Zacks Consensus Estimates are calling for earnings of $5.73 per share and revenue of $4.26 billion. These results would represent year-over-year changes of +453.7% and +60.76%, respectively.

It is also important to note the recent changes to analyst estimates for Methanex. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 remained stagnant. Methanex is holding a Zacks Rank of #1 (Strong Buy) right now.

Digging into valuation, Methanex currently has a Forward P/E ratio of 6.83. This valuation marks a discount compared to its industry's average Forward P/E of 12.98.

The Chemical - Diversified industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 82, putting it in the top 33% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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