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Cosan (CZZ) Gains As Market Dips: What You Should Know

Zacks Equity Research

Cosan (CZZ) closed the most recent trading day at $15.29, moving +0.33% from the previous trading session. This change outpaced the S&P 500's 0.31% loss on the day. Meanwhile, the Dow lost 0.52%, and the Nasdaq, a tech-heavy index, lost 0.28%.

Coming into today, shares of the bioethanol company had gained 16.6% in the past month. In that same time, the Basic Materials sector gained 3.86%, while the S&P 500 gained 2.92%.

Investors will be hoping for strength from CZZ as it approaches its next earnings release.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.74 per share and revenue of $19.36 billion, which would represent changes of -26% and +317.06%, respectively, from the prior year.

Any recent changes to analyst estimates for CZZ should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

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. Within the past 30 days, our consensus EPS projection has moved 15.91% lower. CZZ is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that CZZ has a Forward P/E ratio of 20.59 right now. This represents a no noticeable deviation compared to its industry's average Forward P/E of 20.59.

The Agriculture - Products industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 209, which puts it in the bottom 19% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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