Amerigo Resources (ARREF) closed the most recent trading day at $1.65, moving -1.55% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.21%. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq added 0.45%.
Heading into today, shares of the copper and molybdenum mining company had gained 10.92% over the past month, outpacing the Basic Materials sector's gain of 7.19% and the S&P 500's gain of 3.07%.
Market participants will be closely following the financial results of Amerigo Resources in its upcoming release. The company is expected to report EPS of $0.06, up 200% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.21 per share and a revenue of $0 million, indicating changes of +75% and 0%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Amerigo Resources. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Currently, Amerigo Resources is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Amerigo Resources is currently trading at a Forward P/E ratio of 7.98. This valuation marks a discount compared to its industry average Forward P/E of 24.45.
It is also worth noting that ARREF currently has a PEG ratio of 0.4. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Mining – Non Ferrous industry held an average PEG ratio of 0.83.
The Mining – Non Ferrous industry is part of the Basic Materials sector. With its current Zacks Industry Rank of 177, this industry ranks in the bottom 29% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
