SQM (SQM) Dips More Than Broader Markets: What You Should Know

SQM (SQM) closed the most recent trading day at $83.53, moving -0.91% from the previous trading session. This change lagged the S&P 500's daily loss of 0.88%. Meanwhile, the Dow lost 0.82%, and the Nasdaq, a tech-heavy index, added 0.08%.

Heading into today, shares of the chemicals company had lost 16.32% over the past month, outpacing the Basic Materials sector's loss of 16.65% and lagging the S&P 500's loss of 8.06% in that time.

Wall Street will be looking for positivity from SQM as it approaches its next earnings report date. On that day, SQM is projected to report earnings of $2.75 per share, which would represent year-over-year growth of 787.1%. Our most recent consensus estimate is calling for quarterly revenue of $1.71 billion, up 190.8% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $9.49 per share and revenue of $7.6 billion, which would represent changes of +362.93% and +165.55%, respectively, from the prior year.

Any recent changes to analyst estimates for SQM should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 19.08% higher. SQM is currently sporting a Zacks Rank of #1 (Strong Buy).

Investors should also note SQM's current valuation metrics, including its Forward P/E ratio of 8.89. This represents a premium compared to its industry's average Forward P/E of 4.81.

Also, we should mention that SQM 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. SQM's industry had an average PEG ratio of 0.56 as of yesterday's close.

The Fertilizers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 17, putting it in the top 7% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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