Back to top

Image: Bigstock

Why the Market Dipped But Amerigo Resources (ARREF) Gained Today

Read MoreHide Full Article

Amerigo Resources (ARREF - Free Report) closed at $1.18 in the latest trading session, marking a +1.11% move from the prior day. The stock's performance was ahead of the S&P 500's daily loss of 0.29%. On the other hand, the Dow registered a loss of 0.25%, and the technology-centric Nasdaq decreased by 0.31%.

Coming into today, shares of the copper and molybdenum mining company had lost 7.14% in the past month. In that same time, the Basic Materials sector gained 1.45%, while the S&P 500 gained 1.57%.

The investment community will be closely monitoring the performance of Amerigo Resources in its forthcoming earnings report. On that day, Amerigo Resources is projected to report earnings of $0.02 per share, which would represent year-over-year growth of 150%. At the same time, our most recent consensus estimate is projecting a revenue of $44.47 million, reflecting a 46.62% rise from the equivalent quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.13 per share and revenue of $187.9 million. These totals would mark changes of +550% and +19.33%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Amerigo Resources. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 27.78% decrease. Right now, Amerigo Resources possesses a Zacks Rank of #3 (Hold).

In terms of valuation, Amerigo Resources is presently being traded at a Forward P/E ratio of 9. This indicates a discount in contrast to its industry's Forward P/E of 13.03.

Meanwhile, ARREF's PEG ratio is currently 0.45. 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 the market closed yesterday, the Mining - Non Ferrous industry was having an average PEG ratio of 0.74.

The Mining - Non Ferrous industry is part of the Basic Materials sector. With its current Zacks Industry Rank of 144, this industry ranks in the bottom 44% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Amerigo Resources Ltd. (ARREF) - free report >>

Published in