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Amerigo Resources (ARREF) Beats Stock Market Upswing: What Investors Need to Know

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In the latest market close, Amerigo Resources (ARREF - Free Report) reached $1.32, with a +1.94% movement compared to the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.9%. On the other hand, the Dow registered a gain of 0.81%, and the technology-centric Nasdaq increased by 1.22%.

The copper and molybdenum mining company's stock has climbed by 11.69% in the past month, exceeding the Basic Materials sector's gain of 7.23% and the S&P 500's gain of 3.15%.

Analysts and investors alike will be keeping a close eye on the performance of Amerigo Resources in its upcoming earnings disclosure. On that day, Amerigo Resources is projected to report earnings of $0.02 per share, which would represent year-over-year growth of 150%. Our most recent consensus estimate is calling for quarterly revenue of $44.47 million, up 46.62% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $0.13 per share and revenue of $187.9 million, which would represent changes of +550% and +19.33%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Amerigo Resources. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 27.78% decrease. At present, Amerigo Resources boasts a Zacks Rank of #3 (Hold).

Investors should also note Amerigo Resources's current valuation metrics, including its Forward P/E ratio of 9.92. This valuation marks a discount compared to its industry's average Forward P/E of 21.2.

We can also see that ARREF currently has a PEG ratio of 0.5. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Mining - Non Ferrous was holding an average PEG ratio of 0.84 at yesterday's closing price.

The Mining - Non Ferrous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 89, which puts it in the top 36% of all 250+ industries.

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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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