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Methanex (MEOH) Outpaces Stock Market Gains: What You Should Know

In the latest trading session, Methanex (MEOH) closed at $54.94, marking a +0.7% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.34%. Meanwhile, the Dow gained 0.4%, and the Nasdaq, a tech-heavy index, lost 0.47%.

Heading into today, shares of the methanol supplier had gained 6.75% over the past month, lagging the Basic Materials sector's gain of 9.09% and outpacing the S&P 500's gain of 3.75% in that time.

Investors will be hoping for strength from Methanex as it approaches its next earnings release. On that day, Methanex is projected to report earnings of $2.56 per share, which would represent year-over-year growth of 139.25%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.17 billion, up 15.22% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.61 per share and revenue of $4.22 billion. These totals would mark changes of -6.97% and -4.52%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Methanex. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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. The Zacks Consensus EPS estimate has moved 5.15% higher within the past month. Methanex is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Methanex currently has a Forward P/E ratio of 9.73. Its industry sports an average Forward P/E of 12.13, so we one might conclude that Methanex is trading at a discount comparatively.

The Chemical - Diversified industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 180, which puts it in the bottom 29% 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.

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


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