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

Zacks Equity Research

In the latest trading session, Cosan (CZZ) closed at $15.10, marking a +1.41% move from the previous day. This move outpaced the S&P 500's daily loss of 0.01%. Elsewhere, the Dow gained 0.06%, while the tech-heavy Nasdaq lost 0.06%.

Prior to today's trading, shares of the bioethanol company had gained 8.92% over the past month. This has outpaced the Basic Materials sector's gain of 5.92% and the S&P 500's gain of 3.23% in that time.

CZZ will be looking to display strength as it nears its next earnings release.

CZZ's full-year Zacks Consensus Estimates are calling for earnings of $0.66 per share and revenue of $19.36 billion. These results would represent year-over-year changes of -34% and +317.06%, respectively.

Investors should also note any recent changes to analyst estimates for CZZ. 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.

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 25% lower. CZZ is currently a Zacks Rank #4 (Sell).

Digging into valuation, CZZ currently has a Forward P/E ratio of 22.56. Its industry sports an average Forward P/E of 22.56, so we one might conclude that CZZ is trading at a no noticeable deviation comparatively.

The Agriculture - Products industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 106, putting it in the top 42% 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 CZZ in the coming trading sessions, be sure to utilize Zacks.com.

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