Methanex (MEOH) shares rallied 6.4% in the last trading session to close at $48.87. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock’s 20.3% loss over the past four weeks.
Methanex’s rally reflects positive investor sentiment following its strong first-quarter operating results. The company delivered higher methanol production across its major facilities. The recently acquired Natgasoline and OCI assets added meaningful production and strengthened its North American footprint. Operations in Chile also improved as natural gas supply normalized. Growing demand from the marine fuel market and steady consumption in China’s methanol-to-olefins sector support a favorable long-term outlook.
This methanol supplier is expected to post quarterly earnings of $4.00 per share in its upcoming report, which represents a year-over-year change of +312.4%. Revenues are expected to be $1.44 billion, up 80.7% 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 Methanex, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock’s price usually doesn’t keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on MEOH going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here >>>>
Methanex is part of the Zacks Chemical – Diversified industry. Compass Minerals (CMP), another stock in the same industry, closed the last trading session 0.8% higher at $29.09. CMP has returned -1.6% in the past month.
Compass’ consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.04. Compared to the company’s year-ago EPS, this represents a change of +89.7%. Compass currently boasts a Zacks Rank of #3 (Hold).
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Methanex Corporation (MEOH) : Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).
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