Long term investors looking for stable stocks should take a look at Sociedad Quimica y Minera de Chile S.A. (NYSE:SQM). The stock currently provides a dividend yield of 4.46% for the Basic Materials company. Sell-side analysts covering the shares are projecting that it will reach $55.49 within the next 12-18 months. This is a solid upside to a recent tick of $44.87.
On a consensus basis, analysts have a Buy/Sell rating of 2.20, which is based on a 1 to 5 scale where 1 represents a Strong Buy and 5 a Strong Sell. Some investors may succeed spectacularly in the market while others fail. There is an emotional component to trading and investing which can pose a big obstacle to trading success. Investors frequently try to optimize every decision for success, but sometimes things just don’t work out as planned. Consistently beating the market may involve heavy amounts of homework, and a necessary rebalancing of the portfolio. In fast paced markets, indecision can have a drastic impact. Investors may have all the bases covered but fail to make a trade based only on the fear of being wrong. Individual investors may need to conquer self-doubt in order to reach optimal performance when picking stocks. This may not come as easily for some as it does for others. When the market is winning, investors may become too complacent given the ease of gains. Staying on top of the investing scene even when everything is good may help to prepare if conditions change and the climate starts to worsen.
RECENT PERFORMANCE
Let’s take a look at how the stock has been performing recently. Over the past twelve months, Sociedad Quimica y Minera de Chile S.A. (NYSE:SQM)’s stock was -23.92%. Over the last week of the month, it was -1.32%, 0.20% over the last quarter, and -18.33% for the past six months.
Over the past 50 days, Sociedad Quimica y Minera de Chile S.A. stock’s -8.05% off of the high and 13.48% removed from the low. Their 52-Week High and Low are noted here. -29.64% (High), 13.48%, (Low).
FUNDAMENTAL ANALYSIS
Fundamental analysis examines the financial elements of a company, for example; sales, cash flow, profit and balance sheet. These numbers are then crunched to create theoretical valuations of companies.
Earnings Per Share (EPS) is the earnings made by a company divided by their number of shares. EPS enables the earnings of a company to easily be compared to their competitors. The higher the number, the more profit per dollar is being made on investor capital. Sociedad Quimica y Minera de Chile S.A.’s EPS for the trailing 12 months is 1.79. Their EPS should be compared to other companies in the Basic Materials sector.
Price-to-Earnings Ratio is the current share price divided by annual earnings per share. P/E provides a number that details how many years of earnings it will take a stock to recoup the value of one share at current price levels. Easy to calculate and understand, P/E is an extremely common ratio that is used to compare valuations of stocks against each other relatively. Sociedad Quimica y Minera de Chile S.A.’s P/E ratio is 25.07.
Projected Earnings Growth (PEG) is a forward looking ratio based on anticipated earnings growth. PEG is created by dividing P/E by the projected rate of earnings growth. Sociedad Quimica y Minera de Chile S.A.’s PEG is 1.30.
TECHNICAL ANALYSIS
Technical analysts have little regard for the value of a company. They use historic price data to observe stock price patterns to predict the direction of that price going forward. Analysts use common formulas and ratios to accomplish this.
Sociedad Quimica y Minera de Chile S.A. (NYSE:SQM)’s RSI (Relative Strength Index) is 51.40. RSI is a technical indicator of price momentum, comparing the size of recent gains to the size of recent losses and establishes oversold and overbought positions.
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