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Amerigo Resources (ARREF) Stock Sinks As Market Gains: What You Should Know

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The most recent trading session ended with Amerigo Resources (ARREF - Free Report) standing at $1.39, reflecting a -1.07% shift from the previouse trading day's closing. The stock's performance was behind the S&P 500's daily gain of 1.03%. Meanwhile, the Dow experienced a rise of 1.05%, and the technology-dominated Nasdaq saw an increase of 1.2%.

Prior to today's trading, shares of the copper and molybdenum mining company had gained 12.68% over the past month. This has outpaced the Basic Materials sector's gain of 4.93% and the S&P 500's gain of 5.27% in that time.

Market participants will be closely following the financial results of Amerigo Resources in its upcoming release. The company's upcoming EPS is projected at $0.05, signifying a 16.67% drop compared to the same quarter of the previous year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Amerigo Resources. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. 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 6.67 right now. This expresses a discount compared to the average Forward P/E of 23.62 of its industry.

One should further note that ARREF currently holds a PEG ratio of 0.33. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Mining - Non Ferrous stocks are, on average, holding a PEG ratio of 0.91 based on yesterday's closing prices.

The Mining - Non Ferrous industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 63, finds itself in the top 26% echelons 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.

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


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