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Amerigo Resources (ARREF) Rises Higher Than Market: Key Facts

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In the latest market close, Amerigo Resources (ARREF - Free Report) reached $1.34, with a +1.91% movement compared to the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.4%. Elsewhere, the Dow saw an upswing of 0.62%, while the tech-heavy Nasdaq appreciated by 0.6%.

Heading into today, shares of the copper and molybdenum mining company had gained 8.26% over the past month, outpacing the Basic Materials sector's gain of 3.19% and the S&P 500's gain of 1.71% in that time.

Market participants will be closely following the financial results of Amerigo Resources in its upcoming release. The company's earnings per share (EPS) are projected to be $0.02, reflecting a 150% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $44.47 million, showing a 46.62% escalation compared to the year-ago quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.13 per share and a revenue of $187.9 million, indicating changes of +550% and +19.33%, respectively, from the former year.

Investors should also note any recent changes to analyst estimates for Amerigo Resources. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 27.78% fall in the Zacks Consensus EPS estimate. Amerigo Resources presently features a Zacks Rank of #4 (Sell).

Investors should also note Amerigo Resources's current valuation metrics, including its Forward P/E ratio of 10.08. This signifies a discount in comparison to the average Forward P/E of 17.99 for its industry.

Investors should also note that ARREF has a PEG ratio of 0.5 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Mining - Non Ferrous was holding an average PEG ratio of 0.83 at yesterday's closing price.

The Mining - Non Ferrous industry is part of the Basic Materials sector. At present, this industry carries a Zacks Industry Rank of 142, placing it within the bottom 44% of over 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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