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Why SQM (SQM) Dipped More Than Broader Market Today
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SQM (SQM - Free Report) closed at $50.90 in the latest trading session, marking a -1.6% move from the prior day. The stock's change was less than the S&P 500's daily loss of 1.43%. On the other hand, the Dow registered a loss of 0.32%, and the technology-centric Nasdaq decreased by 2.43%.
The the stock of chemicals company has fallen by 6.98% in the past month, lagging the Basic Materials sector's loss of 5.28% and the S&P 500's loss of 1.55%.
The upcoming earnings release of SQM will be of great interest to investors. The company's earnings report is expected on November 15, 2023. The company is forecasted to report an EPS of $2.38, showcasing a 38.18% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $2.15 billion, showing a 27.28% drop compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $9.44 per share and revenue of $8.8 billion, indicating changes of -30.99% and -17.83%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for SQM. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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, there's been a 14.64% fall in the Zacks Consensus EPS estimate. SQM is currently a Zacks Rank #5 (Strong Sell).
Looking at its valuation, SQM is holding a Forward P/E ratio of 5.48. This indicates a discount in contrast to its industry's Forward P/E of 10.21.
One should further note that SQM currently holds a PEG ratio of 0.37. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Fertilizers stocks are, on average, holding a PEG ratio of 1.3 based on yesterday's closing prices.
The Fertilizers industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 167, positioning it in the bottom 34% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. 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.
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Why SQM (SQM) Dipped More Than Broader Market Today
SQM (SQM - Free Report) closed at $50.90 in the latest trading session, marking a -1.6% move from the prior day. The stock's change was less than the S&P 500's daily loss of 1.43%. On the other hand, the Dow registered a loss of 0.32%, and the technology-centric Nasdaq decreased by 2.43%.
The the stock of chemicals company has fallen by 6.98% in the past month, lagging the Basic Materials sector's loss of 5.28% and the S&P 500's loss of 1.55%.
The upcoming earnings release of SQM will be of great interest to investors. The company's earnings report is expected on November 15, 2023. The company is forecasted to report an EPS of $2.38, showcasing a 38.18% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $2.15 billion, showing a 27.28% drop compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $9.44 per share and revenue of $8.8 billion, indicating changes of -30.99% and -17.83%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for SQM. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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, there's been a 14.64% fall in the Zacks Consensus EPS estimate. SQM is currently a Zacks Rank #5 (Strong Sell).
Looking at its valuation, SQM is holding a Forward P/E ratio of 5.48. This indicates a discount in contrast to its industry's Forward P/E of 10.21.
One should further note that SQM currently holds a PEG ratio of 0.37. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Fertilizers stocks are, on average, holding a PEG ratio of 1.3 based on yesterday's closing prices.
The Fertilizers industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 167, positioning it in the bottom 34% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. 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.