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Amerigo Resources (ARREF) closed at $1.27 in the latest trading session, marking a -1.55% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.03%. Elsewhere, the Dow saw an upswing of 0.28%, while the tech-heavy Nasdaq depreciated by 0.36%.
Heading into today, shares of the copper and molybdenum mining company had gained 15.63% over the past month, outpacing the Basic Materials sector's gain of 8.14% and the S&P 500's gain of 4.19% in that time.
Market participants will be closely following the financial results of Amerigo Resources in its upcoming release. In that report, analysts expect Amerigo Resources to post earnings of $0.04 per share. This would mark year-over-year growth of 100%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $49.52 million, up 16.65% from the year-ago period.
Investors should also take note of any recent adjustments to analyst estimates for Amerigo Resources. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate has remained steady. Amerigo Resources is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Amerigo Resources's current valuation metrics, including its Forward P/E ratio of 6.14. For comparison, its industry has an average Forward P/E of 20.98, which means Amerigo Resources is trading at a discount to the group.
Also, we should mention that ARREF has a PEG ratio of 0.31. 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 0.86.
The Mining - Non Ferrous industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 144, finds itself in the bottom 43% echelons of all 250+ industries.