Here's Why Sigma Lithium Corporation (SGML) Fell More Than Broader Market

Sigma Lithium Corporation (SGML) closed at $14.41 in the latest trading session, marking a -11.16% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.43%. Elsewhere, the Dow saw a downswing of 1.05%, while the tech-heavy Nasdaq depreciated by 0.92%.

The company's shares have seen an increase of 27.62% over the last month, surpassing the Basic Materials sector's gain of 7.73% and the S&P 500's loss of 0.5%.

Investors will be eagerly watching for the performance of Sigma Lithium Corporation in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of -$0.12, marking a 50% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $35.9 million, reflecting a 25.26% fall from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of -$0.35 per share and a revenue of $129 million, demonstrating changes of +23.91% and -15.18%, respectively, from the preceding year.

Investors should also note any recent changes to analyst estimates for Sigma Lithium Corporation. 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 business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Sigma Lithium Corporation is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Sigma Lithium Corporation has a Forward P/E ratio of 25.75 right now. This valuation marks a premium compared to its industry average Forward P/E of 23.99.

We can also see that SGML currently has a PEG ratio of 0.43. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Mining - Miscellaneous industry had an average PEG ratio of 0.7.

The Mining - Miscellaneous industry is part of the Basic Materials sector. With its current Zacks Industry Rank of 47, this industry ranks in the top 20% of all industries, numbering over 250.

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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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