U.S. markets open in 5 hours 54 minutes
  • S&P Futures

    3,989.25
    -30.50 (-0.76%)
     
  • Dow Futures

    31,951.00
    -169.00 (-0.53%)
     
  • Nasdaq Futures

    12,252.50
    -130.25 (-1.05%)
     
  • Russell 2000 Futures

    1,774.80
    -14.70 (-0.82%)
     
  • Crude Oil

    109.58
    -0.91 (-0.82%)
     
  • Gold

    1,805.60
    -2.60 (-0.14%)
     
  • Silver

    21.08
    +0.08 (+0.38%)
     
  • EUR/USD

    1.0424
    +0.0008 (+0.07%)
     
  • 10-Yr Bond

    2.9350
    0.0000 (0.00%)
     
  • Vix

    30.19
    -1.58 (-4.97%)
     
  • GBP/USD

    1.2250
    -0.0013 (-0.10%)
     
  • USD/JPY

    129.2320
    +0.0470 (+0.04%)
     
  • BTC-USD

    29,511.32
    -341.71 (-1.14%)
     
  • CMC Crypto 200

    661.70
    -19.40 (-2.85%)
     
  • FTSE 100

    7,367.33
    -50.82 (-0.69%)
     
  • Nikkei 225

    26,547.05
    +119.40 (+0.45%)
     

Strength Seen in SQM (SQM): Can Its 7.7% Jump Turn into More Strength?

  • Oops!
    Something went wrong.
    Please try again later.
·2 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

SQM (SQM) shares soared 7.7% in the last trading session to close at $61.24. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 7.7% gain over the past four weeks.

SQM’s shares are heading higher in anticipation of strong third-quarter results. The company’s results are expected to be supported by higher global demand and prices for fertilizers on the back of healthy grower economics as well as favorable trends in the lithium market underpinned by strong electric vehicle sales and improving prices. Higher sales volumes and prices across its lithium and specialty plant nutrition businesses are expected to drive its top line and margins in the third quarter.

This chemicals company is expected to post quarterly earnings of $0.51 per share in its upcoming report, which represents a year-over-year change of +82.1%. Revenues are expected to be $665.19 million, up 46.9% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For SQM, the consensus EPS estimate for the quarter has been revised 23.3% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on SQM going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Sociedad Quimica y Minera S.A. (SQM) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research