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Amerigo Resources (ARREF) Falls More Steeply Than Broader Market: What Investors Need to Know

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Amerigo Resources (ARREF - Free Report) closed the most recent trading day at $1.74, moving -1.92% from the previous trading session. This move lagged the S&P 500's daily loss of 0.13%. At the same time, the Dow lost 0.27%, and the tech-heavy Nasdaq lost 0.07%.

The stock of copper and molybdenum mining company has risen by 12.99% in the past month, leading the Basic Materials sector's gain of 6.19% and the S&P 500's gain of 2.71%.

The investment community will be paying close attention to the earnings performance of Amerigo Resources in its upcoming release. The company is predicted to post an EPS of $0.06, indicating a 200% growth compared to the equivalent quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.21 per share and revenue of $0 million. These totals would mark changes of +75% and 0%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Amerigo Resources. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Amerigo Resources currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Amerigo Resources currently has a Forward P/E ratio of 8.45. This indicates a discount in contrast to its industry's Forward P/E of 24.88.

Investors should also note that ARREF has a PEG ratio of 0.42 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. By the end of yesterday's trading, the Mining - Non Ferrous industry had an average PEG ratio of 0.83.

The Mining - Non Ferrous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 176, which puts it in the bottom 29% of all 250+ industries.

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.

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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