Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than the traditional "buying low and selling high" approach, aiming for quicker profits [1] Group 1: Momentum Investing Characteristics - Momentum investing can be risky as stocks may lose momentum if their valuations exceed future growth potential, leading to potential losses for investors [2] - Investing in bargain stocks that exhibit recent price momentum can be a safer strategy, utilizing tools like the Zacks Momentum Style Score to identify promising stocks [3] Group 2: Methanex (MEOH) Analysis - Methanex (MEOH) has shown a four-week price change of 7.8%, indicating growing investor interest [4] - Over the past 12 weeks, MEOH's stock has gained 23.5%, with a beta of 1.36, suggesting it moves 36% more than the market [5] - MEOH has a Momentum Score of A, indicating a favorable time to invest based on momentum [6] Group 3: Earnings Estimates and Valuation - MEOH has received upward revisions in earnings estimates, earning a Zacks Rank 2 (Buy), which is associated with strong momentum effects [7] - The stock is trading at a Price-to-Sales ratio of 0.95, suggesting it is undervalued as investors pay only 95 cents for each dollar of sales [7] Group 4: Additional Investment Opportunities - Besides MEOH, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - Zacks offers over 45 Premium Screens to assist in identifying potential winning stocks based on various investing styles [9]

Core Insights - Zacks Premium provides various tools and resources to help investors make informed decisions and invest confidently in the stock market [1][2] Zacks Style Scores - Zacks Style Scores are indicators designed to assist investors in selecting stocks with the highest potential to outperform the market within a 30-day timeframe [3] - Stocks are rated from A to F based on value, growth, and momentum characteristics, with A being the highest score [3] Categories of Style Scores - **Value Score**: Focuses on identifying undervalued stocks using ratios like P/E, PEG, and Price/Sales to highlight attractive investment opportunities [4] - **Growth Score**: Evaluates stocks based on projected and historical earnings, sales, and cash flow to identify those with sustainable growth potential [5] - **Momentum Score**: Assesses stocks based on price trends and earnings estimate changes to identify optimal entry points for investment [6] - **VGM Score**: A composite score that combines Value, Growth, and Momentum Scores, providing a comprehensive view of a stock's attractiveness [7] Zacks Rank - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to guide investors in building successful portfolios [8] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [9] Stock Selection Strategy - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B to maximize potential returns [10] - Stocks with lower ranks, even if they have high Style Scores, may still face declining earnings forecasts, increasing the risk of price drops [11] Company Spotlight: Methanex Corporation - Methanex Corporation is the largest supplier of methanol globally, serving markets in North America, Asia-Pacific, Europe, and Latin America [12] - Methanol is primarily used in chemical production and energy-related applications, with demand influenced by global economic activity [12] - Methanex holds a Zacks Rank of 2 (Buy) and a VGM Score of A, indicating strong growth potential with an expected year-over-year earnings growth of 8.1% for the current fiscal year [13] - Recent earnings estimates for Methanex have been revised upward, with the Zacks Consensus Estimate increasing by $0.23 to $4.02 per share [13] - The company has demonstrated an average earnings surprise of 85.2%, making it a strong candidate for growth investors [13][14]

Core Viewpoint - Methanex Corporation reported a strong performance in Q4 2024, with net income and adjusted earnings per share significantly increasing compared to the previous year, although net sales fell short of consensus estimates Financial Performance - Q4 2024 net income was $45 million or 67 cents per share, up from $33 million or 50 cents per share in the prior-year quarter [1] - Adjusted earnings per share rose to $1.24 from 52 cents in the year-ago quarter, surpassing the Zacks consensus estimate of $1.01 [1] - Net sales for Q4 2024 were $949 million, missing the Zacks consensus estimate of $1,023.7 million, but showing a growth of approximately 3% year over year [2] - Full-year net sales for 2024 were $3,720 million, slightly down from $3,723 million in 2023, while adjusted earnings for the full year increased to $3.72 per share from $2.25 per share in 2023 [5] Production and Sales - Production in Q4 2024 was 1,868,000 tons, up around 5% year over year, driven by higher output in Chile, New Zealand, Geismar, and Egypt [3] - Sales volume for the reported quarter was 2,564,000 tons, down around 10% year over year, and below the estimate of 2,727,000 tons [3] - The average realized price per ton of methanol increased to $370 from $356 in the previous quarter and $322 in the prior-year quarter, beating the estimate of $368 [4] Cash Flow and Shareholder Returns - In 2024, Methanex returned $50 million to shareholders through regular dividends and repaid a $300 million bond due in December with cash flows generated from operations [6] - The operating cash flow for Q4 2024 was $281 million, and the company ended the year with $892 million in cash [6] Future Outlook - Methanex's production guidance for 2025 is approximately 7.5 million tons, excluding additional production from OCI assets post-acquisition [7] - In Q1 2025, significantly higher adjusted EBITDA is expected compared to Q4 2024, with produced sales anticipated to be near Q4 2024 levels and a higher average realized price projected between $395 to $405 per ton for January and February [8] Stock Performance - MEOH stock has gained 12.4% over the past year, contrasting with a 0.3% decline in the industry [9]

Core Viewpoint - The article emphasizes the importance of value investing as a strategy to identify strong stocks, particularly highlighting Methanex (MEOH) as a potentially undervalued company based on various financial metrics [2][7]. Company Summary - Methanex (MEOH) currently holds a Zacks Rank of 2 (Buy) and an A for Value, indicating strong potential for value investors [4]. - The stock is trading at a P/E ratio of 12.01, significantly lower than the industry average of 16.38, suggesting it may be undervalued [4]. - MEOH has a P/B ratio of 1.43, which is attractive compared to the industry's average P/B of 1.88, further indicating potential undervaluation [5]. - The P/CF ratio for MEOH stands at 6.09, well below the industry average of 10.17, reinforcing the notion that the stock is undervalued based on cash flow strength [6]. - Over the past 52 weeks, MEOH's Forward P/E has fluctuated between 9.66 and 19.13, with a median of 14.14, while its P/B has ranged from 1.08 to 1.67, and its P/CF has varied from 4.54 to 6.73 [4][5][6]. Industry Summary - The industry average P/E is 16.38, P/B is 1.88, and P/CF is 10.17, which provides a benchmark for evaluating Methanex's financial metrics [4][5][6].

For the quarter ended December 2024, Methanex (MEOH) reported revenue of $949 million, up 2.9% over the same period last year. EPS came in at $1.24, compared to $0.52 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $1.02 billion, representing a surprise of -7.29%. The company delivered an EPS surprise of +22.77%, with the consensus EPS estimate being $1.01.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street exp ...

Methanex (MEOH) came out with quarterly earnings of $1.24 per share, beating the Zacks Consensus Estimate of $1.01 per share. This compares to earnings of $0.52 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 22.77%. A quarter ago, it was expected that this methanol supplier would post earnings of $0.44 per share when it actually produced earnings of $1.21, delivering a surprise of 175%.Over the last four quarters, the company ...

Wall Street expects a year-over-year increase in earnings on higher revenues when Methanex (MEOH) reports results for the quarter ended December 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on January 29, 2025, might help the stock move higher if these key numbers are better than exp ...

Earnings Estimate Revisions - The company's earnings estimates for the next quarter and full year have seen significant upward revisions, driven by strong agreement among analysts [3] - For the current quarter, the company is expected to earn $0 94 per share, representing an 80 77% increase from the year-ago period [4] - Over the last 30 days, the Zacks Consensus Estimate for the current quarter has increased by 18 45% due to one positive estimate revision [4] - For the full year, the earnings estimate of $3 49 per share reflects a 55 11% increase from the previous year [5] - Over the past month, two estimates have been revised upward for the current year, pushing the consensus estimate 6 29% higher [5] Stock Performance and Outlook - The stock has gained 8 6% over the past four weeks, driven by strong estimate revisions and increased investor interest [7] - The improving earnings outlook suggests that the upward trend in the stock price may continue [1] - Empirical research indicates a strong correlation between earnings estimate revisions and near-term stock price movements [2] Zacks Rank and Investment Potential - The company currently holds a Zacks Rank 2 (Buy), reflecting promising estimate revisions [6] - Stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) have historically outperformed the S&P 500 [6] - The Zacks Rank system has a proven track record, with Zacks 1 Ranked stocks generating an average annual return of +25% since 2008 [3] Conclusion - The company's strong earnings estimate revisions and favorable Zacks Rank make it a potential candidate for portfolio addition [7]

Earnings Performance - Methanex has consistently surpassed earnings estimates in the last two quarters, with an average surprise of 100.77% [1] - In the most recent quarter, the company reported earnings of $1.21 per share, significantly higher than the expected $0.44 per share, representing a surprise of 175% [2] - For the previous quarter, Methanex reported earnings of $0.62 per share, beating the consensus estimate of $0.49 per share by 26.53% [2] Earnings ESP and Zacks Rank - Methanex currently has a positive Earnings ESP of +6.76%, indicating bullish sentiment among analysts regarding the company's earnings prospects [6] - The combination of a positive Earnings ESP and a Zacks Rank 2 (Buy) suggests a high likelihood of another earnings beat in the upcoming report [6] - Stocks with a positive Earnings ESP and a Zacks Rank 3 (Hold) or better have a nearly 70% chance of producing a positive earnings surprise [4] Analyst Estimates and Predictive Power - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate being more reflective of recent analyst revisions [5] - A negative Earnings ESP reduces the predictive power of the metric but does not necessarily indicate an earnings miss [7] - It is important to check a company's Earnings ESP before its quarterly release to increase the odds of success [8]

Momentum investing is essentially an exception to the idea of "buying low and selling high." Investors following this style of investing are usually not interested in betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth potenti ...