Methanex (MEOH) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Methanex (MEOH) closed at $56.48, marking a +1.77% move from the previous day. This move outpaced the S&P 500's daily gain of 0.51%. At the same time, the Dow added 0.44%, and the tech-heavy Nasdaq gained 0.1%.
Coming into today, shares of the methanol supplier had gained 13.78% in the past month. In that same time, the Basic Materials sector gained 14.91%, while the S&P 500 gained 5.51%.
Wall Street will be looking for positivity from Methanex as it approaches its next earnings report date. The company is expected to report EPS of $2.05, up 91.59% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.17 billion, up 15.22% from the year-ago period.
MEOH's full-year Zacks Consensus Estimates are calling for earnings of $5.61 per share and revenue of $4.22 billion. These results would represent year-over-year changes of -6.97% and -4.52%, respectively.
Investors should also note any recent changes to analyst estimates for Methanex. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 5.15% higher within the past month. Methanex is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Methanex has a Forward P/E ratio of 9.89 right now. This valuation marks a discount compared to its industry's average Forward P/E of 12.34.
The Chemical - Diversified industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 174, which puts it in the bottom 32% 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 MEOH in the coming trading sessions, be sure to utilize Zacks.com.
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