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Amerigo Resources (ARREF) Stock Sinks As Market Gains: Here's Why

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The latest trading session saw Amerigo Resources (ARREF - Free Report) ending at $1.26, denoting a -0.24% adjustment from its last day's close. The stock's change was less than the S&P 500's daily gain of 0.58%. At the same time, the Dow added 0.75%, and the tech-heavy Nasdaq gained 0.55%.

Prior to today's trading, shares of the copper and molybdenum mining company had lost 5.06% over the past month. This has lagged the Basic Materials sector's loss of 1.58% and the S&P 500's loss of 0.84% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Amerigo Resources in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.04, reflecting a 33.33% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $49.44 million, up 10.06% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.21 per share and a revenue of $202 million, signifying shifts of +75% and +4.79%, respectively, from the last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Amerigo Resources. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Currently, Amerigo Resources is carrying a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Amerigo Resources has a Forward P/E ratio of 6.03 right now. Its industry sports an average Forward P/E of 20.79, so one might conclude that Amerigo Resources is trading at a discount comparatively.

It is also worth noting that ARREF currently has a PEG ratio of 0.3. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Mining - Non Ferrous was holding an average PEG ratio of 0.75 at yesterday's closing price.

The Mining - Non Ferrous industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 154, positioning it in the bottom 38% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow ARREF in the coming trading sessions, be sure to utilize Zacks.com.


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