This story originally appeared on Zacks
Methanex (MEOH) closed the last trading day at $39.74, up +1.64% from the previous trading session. That change outpaced the S&P 500’s gain of 0.96% on the day. Elsewhere, the Dow Jones rose 0.61%, while the big tech Nasdaq lost 0.04%.
As of today, shares of methanol suppliers have lost 14.89% in the past month. Meanwhile, the basic materials sector lost 1.73%, while the S&P 500 lost 0.21%.
Investors are hoping for strength from Methanex as it nears its next earnings release. The company is expected to report earnings per share of $2.08, up 1286.67% from the previous quarter. Meanwhile, our latest consensus estimate calls for revenue of $1.2 billion, an increase of 47.35% over the prior year quarter.
Zacks’ full-year consensus estimates call for MEOH to generate earnings of $5.73 per share on revenue of $4.26 billion. These results will represent annual changes of +453.7% and +60.76%, respectively.
It is also important to note the recent changes in analyst estimates for Methanex. These reviews usually reflect the latest short-term business trends, which can change frequently. With this in mind, we can take the positive rating reviews as a sign of optimism about the company’s business outlook.
Based on our research, we believe that these discretionary reviews are directly related to stock movements close to the team. Investors can take advantage of this using Zacks Rank. This model takes into account these changes in grading and provides a simple and actionable rating system.
The Zacks Rank system ranges from #1 (strong buy) to #5 (strong sell). The company has a proven track record of success, subject to external scrutiny, with the No. 1 stock having generated an average annual return of over 25% since 1988. Over the past month, Zacks Consensus EPS estimate has remained flat. Methanex holds Zacks’ #1 rating (strong buy) at the moment.
When looking at valuation, Methanex currently has a forward P/E ratio of 6.83. This valuation represents a discount compared to the industry’s forward P/E average of 12.98.
The chemical industry – diversified is part of the basic materials sector. This group has a Zacks Industry Rating of 82, placing it in the top 33% of all 250+ industries.
The Zacks Industry Ranking measures the strength of our individual industry groups by measuring the average Zacks rating of the individual stocks within the groups. Our research shows that industries ranked 50% outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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