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Amerigo Resources (ARREF) Advances While Market Declines: Some Information for Investors

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Amerigo Resources (ARREF - Free Report) ended the recent trading session at $1.67, demonstrating a +1.03% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily loss of 0.4%. Meanwhile, the Dow lost 0.98%, and the Nasdaq, a tech-heavy index, added 0.18%.

The copper and molybdenum mining company's stock has climbed by 17.86% in the past month, exceeding the Basic Materials sector's gain of 2.16% and the S&P 500's gain of 4.97%.

The investment community will be closely monitoring the performance of Amerigo Resources in its forthcoming earnings report. The company is predicted to post an EPS of $0.05, indicating a 16.67% decline compared to the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $0.21 per share and a revenue of $0 million, demonstrating changes of +75% and 0%, respectively, from the preceding 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. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, Amerigo Resources is carrying a Zacks Rank of #3 (Hold).

In the context of valuation, Amerigo Resources is at present trading with a Forward P/E ratio of 7.86. For comparison, its industry has an average Forward P/E of 22.13, which means Amerigo Resources is trading at a discount to the group.

We can also see that ARREF currently has a PEG ratio of 0.39. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. ARREF's industry had an average PEG ratio of 0.85 as of yesterday's close.

The Mining - Non Ferrous industry is part of the Basic Materials sector. With its current Zacks Industry Rank of 42, this industry ranks in the top 18% of all industries, numbering over 250.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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