This story originally appeared on Zack
Methanex (MEOH) closed on the most recent trading day at $ 39.74, or + 1.64% from the previous trading session. The change topped the S&P 500’s 0.96% gain on the day. Elsewhere, the Dow Jones gained 0.61%, while the highly technological Nasdaq lost 0.04%.
As of today, shares of the methanol supplier had lost 14.89% over the past month. At the same time, the basic materials sector lost 1.73%, while the S&P 500 lost 0.21%.
Investors are hoping for Methanex strength as its next earnings release nears. The company is expected to post EPS of $ 2.08, up 1,286.67% from the previous year quarter. Meanwhile, our latest consensus estimate projects revenue of $ 1.2 billion, up 47.35% from the previous year’s quarter.
MEOH’s Zacks consensus estimates for the full year project earnings of $ 5.73 per share and revenue of $ 4.26 billion. These results would represent year-over-year variations of + 453.7% and + 60.76%, respectively.
It’s also important to note the recent changes to analyst estimates for Methanex. These revisions generally reflect the latest short-term business trends, which can change frequently. With this in mind, we can take positive estimate revisions as a sign of optimism about the company’s business prospects.
Based on our research, we believe these estimate revisions are directly related to stock movements close to the team. Investors can take advantage of this by using the Zacks Ranking. This model takes into account these changes in estimate and provides a simple and workable scoring system.
Zacks’ ranking system ranges from # 1 (strong buy) to # 5 (strong sell). It has a remarkable, externally verified track record of success, with No.1 stocks generating an average annual return of + 25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained stagnant. Methanex currently holds a Zacks # 1 rank (strong buy).
Digging into the valuation, Methanex currently has a forward P / E ratio of 6.83. This valuation marks a discount compared to the average forward P / E of its sector of 12.98.
The Chemicals – Diversified industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 82, which places it in the top 33% of the 250+ industries.
The Zacks Industry Rankings assesses the strength of our individual industry groups by measuring the average Zacks rank of individual stocks within groups. Our research shows that the top 50% of industries top the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock market metrics and more on Zacks.com.
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