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

Zacks Equity Research

Cosan (CZZ) closed at $14.44 in the latest trading session, marking a -1.16% move from the prior day. This change lagged the S&P 500's 0.16% loss on the day. Meanwhile, the Dow gained 0.11%, and the Nasdaq, a tech-heavy index, lost 0.44%.

Coming into today, shares of the bioethanol company had gained 11.36% in the past month. In that same time, the Basic Materials sector lost 0.04%, while the S&P 500 gained 4%.

Wall Street will be looking for positivity from CZZ as it approaches its next earnings report date.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.88 per share and revenue of $19.36 billion, which would represent changes of -12% and +317.06%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for CZZ. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.15% higher. CZZ is currently sporting a Zacks Rank of #1 (Strong Buy).

Digging into valuation, CZZ currently has a Forward P/E ratio of 16.6. This represents a discount compared to its industry's average Forward P/E of 26.79.

The Agriculture - Products industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 35, putting it in the top 14% 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.

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


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