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Globe Specialty Metals (GSM) Stock Sinks As Market Gains: What You Should Know

Zacks Equity Research
·3-min read

In the latest trading session, Globe Specialty Metals (GSM) closed at $5.86, marking a -0.85% move from the previous day. This change lagged the S&P 500's daily gain of 2.46%. Meanwhile, the Dow gained 2.59%, and the Nasdaq, a tech-heavy index, lost 0.23%.

Prior to today's trading, shares of the producer of silicon metal and silicon-based alloys had gained 11.93% over the past month. This has outpaced the Basic Materials sector's gain of 8.95% and the S&P 500's gain of 4.56% in that time.

Investors will be hoping for strength from Globe Specialty Metals as it approaches its next earnings release. In that report, analysts expect Globe Specialty Metals to post earnings of $0.68 per share. This would mark year-over-year growth of 288.89%. Our most recent consensus estimate is calling for quarterly revenue of $694.65 million, up 61.84% from the year-ago period.

GSM's full-year Zacks Consensus Estimates are calling for earnings of $2.93 per share and revenue of $2.82 billion. These results would represent year-over-year changes of +1727.78% and +58.26%, respectively.

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It is also important to note the recent changes to analyst estimates for Globe Specialty Metals. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Globe Specialty Metals is holding a Zacks Rank of #2 (Buy) right now.

Looking at its valuation, Globe Specialty Metals is holding a Forward P/E ratio of 2.02. This represents a discount compared to its industry's average Forward P/E of 8.27.

The Mining - Miscellaneous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 61, putting it in the top 25% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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Zacks Investment Research