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Amerigo Resources (ARREF) Falls More Steeply Than Broader Market: What Investors Need to Know

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In the latest trading session, Amerigo Resources (ARREF - Free Report) closed at $1.75, marking a -2.88% move from the previous day. This change lagged the S&P 500's 0.55% loss on the day. On the other hand, the Dow registered a loss of 0.19%, and the technology-centric Nasdaq decreased by 0.95%.

The stock of copper and molybdenum mining company has risen by 7.42% in the past month, leading the Basic Materials sector's gain of 4.52% and the S&P 500's gain of 3.64%.

Market participants will be closely following the financial results of Amerigo Resources in its upcoming release. The company is forecasted to report an EPS of $0.06, showcasing a 200% upward movement from the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $0.21 per share and revenue of $0 million, which would represent changes of +75% and 0%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Amerigo Resources. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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 past month, the Zacks Consensus EPS estimate remained stagnant. Amerigo Resources presently features a Zacks Rank of #3 (Hold).

With respect to valuation, Amerigo Resources is currently being traded at a Forward P/E ratio of 8.59. Its industry sports an average Forward P/E of 24.75, so one might conclude that Amerigo Resources is trading at a discount comparatively.

Meanwhile, ARREF's PEG ratio is currently 0.43. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Mining - Non Ferrous industry had an average PEG ratio of 0.82.

The Mining - Non Ferrous industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 153, finds itself in the bottom 39% echelons 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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