Back to top

Image: Bigstock

Amerigo Resources (ARREF) Sees a More Significant Dip Than Broader Market: Some Facts to Know

Read MoreHide Full Article

Amerigo Resources (ARREF - Free Report) closed the most recent trading day at $1.39, moving -1.14% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 1.13%. On the other hand, the Dow registered a loss of 1.79%, and the technology-centric Nasdaq decreased by 1.3%.

The copper and molybdenum mining company's stock has climbed by 14.27% in the past month, exceeding the Basic Materials sector's gain of 4.24% and the S&P 500's gain of 3.55%.

Investors will be eagerly watching for the performance of Amerigo Resources in its upcoming earnings disclosure. On that day, Amerigo Resources is projected to report earnings of $0.05 per share, which would represent a year-over-year decline of 16.67%.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.21 per share and a revenue of $0 million, representing changes of +75% and 0%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Amerigo Resources. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Amerigo Resources currently has a Zacks Rank of #3 (Hold).

From a valuation perspective, Amerigo Resources is currently exchanging hands at a Forward P/E ratio of 6.67. This valuation marks a discount compared to its industry average Forward P/E of 23.45.

It's also important to note that ARREF currently trades at a PEG ratio of 0.33. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Mining - Non Ferrous stocks are, on average, holding a PEG ratio of 0.89 based on yesterday's closing prices.

The Mining - Non Ferrous industry is part of the Basic Materials sector. With its current Zacks Industry Rank of 63, this industry ranks in the top 26% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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.


See More Zacks Research for These Tickers


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


Amerigo Resources Ltd. (ARREF) - free report >>

Published in