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The latest trading session saw Amerigo Resources (ARREF) ending at $1.15, denoting a -0.43% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a gain of 1% for the day. Elsewhere, the Dow gained 0.78%, while the tech-heavy Nasdaq added 1.51%.
The copper and molybdenum mining company's stock has climbed by 3.6% in the past month, exceeding the Basic Materials sector's loss of 3.81% and the S&P 500's loss of 2.14%.
Analysts and investors alike will be keeping a close eye on the performance of Amerigo Resources in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.04, marking a 100% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $49.52 million, indicating a 16.65% increase compared to the same quarter of the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Amerigo Resources. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, Amerigo Resources boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, Amerigo Resources is currently exchanging hands at a Forward P/E ratio of 5.48. This valuation marks a discount compared to its industry's average Forward P/E of 21.11.
Investors should also note that ARREF has a PEG ratio of 0.27 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Mining - Non Ferrous industry was having an average PEG ratio of 1.94.
The Mining - Non Ferrous industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 168, finds itself in the bottom 34% echelons of all 250+ industries.
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.