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

In the latest trading session, SQM (SQM) closed at $69.65, marking a -1.68% move from the previous day. This change lagged the S&P 500's 0.77% loss on the day. At the same time, the Dow lost 0.65%, and the tech-heavy Nasdaq lost 2.23%.

Coming into today, shares of the chemicals company had gained 7.19% in the past month. In that same time, the Basic Materials sector gained 1.38%, while the S&P 500 gained 4.66%.

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 $2.87, down 4.65% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.38 billion, down 8.49% from the prior-year quarter.

SQM's full-year Zacks Consensus Estimates are calling for earnings of $12.45 per share and revenue of $10.21 billion. These results would represent year-over-year changes of -8.99% and -4.63%, respectively.

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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. SQM is currently a Zacks Rank #2 (Buy).

Valuation is also important, so investors should note that SQM has a Forward P/E ratio of 5.69 right now. For comparison, its industry has an average Forward P/E of 8.18, which means SQM is trading at a discount to the group.

It is also worth noting that SQM currently has a PEG ratio of 0.39. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Fertilizers industry currently had an average PEG ratio of 1.12 as of yesterday's close.

The Fertilizers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 224, putting it in the bottom 12% 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 SQM in the coming trading sessions, be sure to utilize Zacks.com.

Zacks Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.

This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>

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