In the latest trading session, Amerigo Resources (ARREF) closed at $1.56, marking a -3.69% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.52%. Elsewhere, the Dow saw an upswing of 1%, while the tech-heavy Nasdaq appreciated by 0.52%.
Heading into today, shares of the copper and molybdenum mining company had gained 19.06% over the past month, outpacing the Basic Materials sector's gain of 4.06% and the S&P 500's gain of 5.95%.
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Investors will be eagerly watching for the performance of Amerigo Resources in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.05, indicating a 16.67% decline compared to the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.21 per share and revenue of $0 million, indicating changes of +75% and 0%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Amerigo Resources. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Amerigo Resources presently features a Zacks Rank of #3 (Hold).
Looking at valuation, Amerigo Resources is presently trading at a Forward P/E ratio of 7.69. This valuation marks a discount compared to its industry average Forward P/E of 24.02.
Meanwhile, ARREF's PEG ratio is currently 0.38. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Mining – Non Ferrous industry held an average PEG ratio of 0.91.
The Mining – Non Ferrous industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 149, finds itself in the bottom 40% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
