Copper Fell and Gold Rose after the Brexit Vote
Copper fell lower on Friday morning after the Brexit vote. At 5:38 AM EST, the COMEX copper futures contract for July delivery was trading at $2.11 per pound.
Mining companies reversed their 2015 losses during the first few months of 2016. The correlation between mining stocks and gold remains high.
Gold kept swinging between gains and losses on June 23, due to cautiousness in the Market regarding the United Kingdom’s vote on exiting the EU.
Let’s now dive into EPS (earnings per share) estimates for Monsanto (MON) in the upcoming 3Q16 report.
With Monsanto’s (MON) fiscal 2Q16 earnings release around the corner, let’s look at the company’s current valuation multiple and how it’s trended over the years.
As of June 24, 2016, Monsanto (MON) was trading at ~$108.9 per share. Let’s look at Wall Street analyst ratings and target prices for the company’s share price over the next 12 months.
Monsanto (MON) is set to release its fiscal 3Q16 quarter earnings on June 29 before the market opens.
Monsanto (MON) is expected to report ~$4.5 billion in sales in its upcoming fiscal 3Q16 earnings.
Monsanto (MON) continues to restructure to cope with the challenging agricultural environment.
Mosaic has almost equal ratings of “buy” and “sell.” Overall, analysts have a “hold” rating on Mosaic.
To date, the median valuation of fertilizer stocks is around 7.9x. That’s at the midpoint of the nine-year average of 8.2x.
Continuing the 1Q16 earnings trend, agricultural fertilizer companies are anticipated to record a YoY decline in earnings for 2016. Analysts expect Mosaic to fall the hardest.
Looking at the earnings trend, most fertilizer companies saw a significant earnings growth in 2007–2008. CF Industries (CF) recorded an adjusted earnings growth of about 960%.
In 2018, capacity is expected to exceed demand, which may explain why the recent crop price increase may not have had the same effect on fertilizer prices.
Investors in the fertilizer industry (XLB) must actively track the relationship between crop prices and fertilizer prices. This, in turn, impacts agricultural chemical companies.
In this series, we’ll look at what caused agricultural fertilizer stocks to perform poorly compared to the benchmark indexes.
Silver Standard Resources (SSRI) completed the share-based acquisition of Claude Resources in early June.
The majority of analysts have a “hold” rating on Silver Standard Resources (SSRI).
Being a high-cost producer, Pan American Silver had EBITDA margins of just 10.5% in 2015, which is the lowest among its peers.
75% of analysts have a “hold” rating on Pan American Silver (PAAS), 17% have “buy” ratings, and only 8% have “sell” ratings.