Wall Street analysts have the ability to provide stock ratings for companies that they track. Based on analysts used by Zacks Research, the present average broker rating on shares of Sociedad Quimica y Minera S.A. (NYSE:SQM) is currently 1.4. This mean rating includes analysts who have offered Sell, Buy and Hold ratings on the equity. This rating lands on a numerical recommendation scale from 1 to 5. A score of 1 would represent a Buy recommendation, and a score of 5 would indicate a Sell recommendation. Out of all the analysts providing ratings, 4 have rated the stock a Strong Buy or Buy, based on data provided by Zacks Research.
When getting into the markets, most investors realize that riskier stocks may have an increased potential for higher returns. If investors decide to take a chance on some of these stocks, they may want to employ some standard techniques to help manage that risk. This may involve creating a diversified stock portfolio. Mixing up the portfolio with stocks from different sectors, market caps, and growth potential, may be the right move. In general, the goal is to maximize returns in accordance with the individual’s specific risk profile. It should be obvious that no matter how well rounded the portfolio is, there are always risks in the equity markets. Having a sound plan before investing can help ease the burden of knowing that markets can sometimes do crazy things without any rhyme or reason.
Zooming in on recent stock price action for Sociedad Quimica y Minera S.A. (NYSE:SQM), we note that shares are trading near the 45.25 level. Investors will often follow stock price levels in relation to the 52-week high and low levels. The 52-week high is presently 63.9, and the 52-week low is sitting at 40.77. When a stock price is getting close to either the 52-week high or 52-week low, investors may track activity to watch for a move past the established mark. Over the last 12 weeks, shares have seen a change of 4.72%. Heading further back to the start of the year, we note that shares have seen a change of -23.78%. Focusing in closer to the last 4 weeks, shares have seen a change of -2.75%. Over the past five trading days, the stock has changed 8.28%.
Sell-side Wall Street analysts will commonly offer stock price target estimates. Many investors pay close attention to where the analysts project the stock moving in the future. After a recent scan, we can see that analysts polled by Zacks Research have set a consensus price target of $51.25 on shares of Sociedad Quimica y Minera S.A. (NYSE:SQM). Price target estimates can be calculated using various methods, and they may be quite different depending on the individual analyst. A fully researched analyst report will generally provide detailed reasoning for a specific target price prediction. Some investors may track analyst targets very closely and use the information to complement their own stock research.
Taking a quick look at the current quarter EPS consensus estimate for Sociedad Quimica y Minera S.A. (NYSE:SQM), we can see that the most recent level is sitting at 0.47. This EPS projection uses 3 Sell-Side analysts polled by Zacks Research. For the previous reported quarter, the company posted a quarterly EPS of 0.32. Covering analysts have the tough job of following companies and offering future estimates. These estimates are often closely followed on the Street, and earnings beats or misses revolve around these projections. Sometimes these predictions are extremely close to the actual reported number, and other times they may be way off. When a company posts actual earnings numbers, the surprise factor can lead to sudden stock price fluctuations. If a company meets and beats estimates and posts a positive earnings surprise, the stock may see a near-term bump. On the other end, a negative surprise may send the stock in the opposite direction. Many investors will choose to trade with caution around earnings releases and wait to make a move until after the major activity has subsided.
Active investors are typically interested in the factors that drive stock price movements. Buying an individual stock means that you own a piece of the company. The hope is that the company does very well and becomes highly profitable. A profitable company may decide to do various things with the profits. They may reinvest profits back into the business, or they may choose to pay shareholders dividends from those earnings. Sometimes stocks may eventually become undervalued or overvalued. Spotting these trends may lead to further examination or the underlying fundamentals of the company. A company that continues to disappoint on the earnings front may have some issues that need to be addressed. It is highly important to make sure all the research is done on a stock, especially if the investor is heavily weighted on the name. Sometimes earnings reports may be good, but the stock price does not reflect that. Having a good understanding of the entire picture may help investors better travel the winding stock market road.