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Methanex (MEOH) closed at $39.78 in the latest trading session, marking a -1.07% move from the prior day. This move lagged the S&P 500’s daily loss of 0.85%. At the same time, the Dow lost 0.17%, and the tech-heavy Nasdaq lost 0.05%.
Coming into today, shares of the methanol supplier had lost 13.79% in the past month. In that same time, the Basic Materials sector lost 1.7%, while the S&P 500 lost 0.97%.
Methanex will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.08, up 1286.67% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.2 billion, up 47.35% from the year-ago period.
MEOH’s full-year Zacks Consensus Estimates are calling for earnings of $5.73 per share and revenue of $4.26 billion. These results would represent year-over-year changes of +453.7% and +60.76%, respectively.
Any recent changes to analyst estimates for Methanex should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Methanex is holding a Zacks Rank of #1 (Strong Buy) right now.
Digging into valuation, Methanex currently has a Forward P/E ratio of 7.02. This represents a discount compared to its industry’s average Forward P/E of 11.74.
The Chemical – Diversified industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 104, putting it in the top 41% 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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