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SQM (SQM) Gains As Market Dips: What You Should Know

Zacks Equity Research
·3 min read

SQM (SQM) closed at $53.49 in the latest trading session, marking a +0.38% move from the prior day. This move outpaced the S&P 500's daily loss of 1.22%. Meanwhile, the Dow lost 0.19%, and the Nasdaq, a tech-heavy index, lost 0.53%.

Coming into today, shares of the chemicals company had gained 3.86% in the past month. In that same time, the Basic Materials sector lost 1.19%, while the S&P 500 lost 6.58%.

SQM will be looking to display strength as it nears its next earnings release. On that day, SQM is projected to report earnings of $0.86 per share, which would represent year-over-year growth of 244%. Our most recent consensus estimate is calling for quarterly revenue of $933.32 million, up 81.65% from the year-ago period.

Investors might also notice recent changes to analyst estimates for SQM. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 4.19% higher within the past month. SQM is currently sporting a Zacks Rank of #1 (Strong Buy).

Digging into valuation, SQM currently has a Forward P/E ratio of 14.47. For comparison, its industry has an average Forward P/E of 7.13, which means SQM is trading at a premium to the group.

Meanwhile, SQM's PEG ratio is currently 0.36. 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 Fertilizers industry currently had an average PEG ratio of 0.76 as of yesterday's close.

The Fertilizers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 4, which puts it in the top 2% 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.

To follow SQM in the coming trading sessions, be sure to utilize Zacks.com.


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Zacks Investment Research