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

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In the latest trading session, SQM (SQM) closed at $94.74, marking a -0.22% move from the previous day. This move lagged the S&P 500's daily loss of 0.08%. Elsewhere, the Dow lost 0.26%, while the tech-heavy Nasdaq added 0.08%.

Prior to today's trading, shares of the chemicals company had gained 13.92% over the past month. This has outpaced the Basic Materials sector's gain of 0.36% and the S&P 500's gain of 8.78% in that time.

Wall Street will be looking for positivity from SQM as it approaches its next earnings report date. The company is expected to report EPS of $3.24, up 945.16% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.37 billion, up 302.68% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.58 per share and revenue of $9.51 billion. These totals would mark changes of +513.66% and +232.33%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for SQM. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 17.44% higher. SQM currently has a Zacks Rank of #1 (Strong Buy).

Investors should also note SQM's current valuation metrics, including its Forward P/E ratio of 7.55. This valuation marks a premium compared to its industry's average Forward P/E of 4.79.

It is also worth noting that SQM currently has a PEG ratio of 0.43. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Fertilizers stocks are, on average, holding a PEG ratio of 0.58 based on yesterday's closing prices.

The Fertilizers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 48, which puts it in the top 20% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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Sociedad Quimica y Minera S.A. (SQM) : Free Stock Analysis Report
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