Back to top

Image: Bigstock

Amerigo Resources (ARREF) Stock Drops Despite Market Gains: Important Facts to Note

Read MoreHide Full Article

In the latest close session, Amerigo Resources (ARREF - Free Report) was down 1.38% at $1.93. The stock's performance was behind the S&P 500's daily gain of 0.79%. Elsewhere, the Dow saw an upswing of 1.01%, while the tech-heavy Nasdaq appreciated by 1.15%.

Coming into today, shares of the copper and molybdenum mining company had gained 6.94% in the past month. In that same time, the Basic Materials sector lost 2.89%, while the S&P 500 gained 1.27%.

The investment community will be closely monitoring the performance of Amerigo Resources in its forthcoming earnings report. The company's upcoming EPS is projected at $0.06, signifying a 200.00% increase compared to the same quarter of the previous year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.21 per share and a revenue of $0 million, indicating changes of +75% and 0%, respectively, from the former year.

Investors should also pay attention to any latest changes in analyst estimates for Amerigo Resources. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 9.32 right now. This denotes a discount relative to the industry average Forward P/E of 25.95.

The Mining - Non Ferrous industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 14, positioning it in the top 6% of all 250+ industries.

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.

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