This story originally appeared on Zacks
In the latest trading session, Methanex (MEOH) closed at $39.77, marking a +0.71% move from the previous day. The stock outpaced the S&P 500’s daily loss of 1.14%. Meanwhile, the Dow lost 1.23%, and the Nasdaq, a tech-heavy index, lost 0.36%.
Prior to today’s trading, shares of the methanol supplier had lost 8.52% over the past month. This has lagged the Basic Materials sector’s loss of 1.24% and the S&P 500’s loss of 1.37% in that time.
Wall Street will be looking for positivity from Methanex as it approaches its next earnings report date. In that report, analysts expect Methanex to post earnings of $2.08 per share. This would mark year-over-year growth of 1286.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.2 billion, up 47.35% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.73 per share and revenue of $4.26 billion, which would represent changes of +453.7% and +60.76%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Methanex. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Methanex is currently sporting a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Methanex has a Forward P/E ratio of 6.9 right now. This represents a discount compared to its industry’s average Forward P/E of 13.24.
The Chemical – Diversified industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 87, which puts it in the top 35% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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