If investors are looking for a stable dividend stock with upside, Sociedad Quimica y Minera de Chile S.A. (NYSE:SQM) could be one that fits the bill. The stock currently provides a dividend yield of 4.64% for the Basic Materials company.
On a consensus basis, analysts have a Buy/Sell rating of 2.30, which is based on a 1 to 5 scale. The sell-side is projecting that it will reach $55.23 within the next 12 months. This is a solid upside to a recent bid of $43.09. The primary goal for some beginner traders might be just trying to survive. Traders that are disciplined with their money management may be able to better ride out the bumps that come with inexperience. Amateur traders tend to put too much at risk which can increase frustration during an extended losing streak. The more capital that is lost, the more difficult it can be to recover. Markets can be cruel, and traders that jump in without proper preparation can get pounded. Taking the time to carefully prepare before putting hard earned money at risk can help when the inevitable sticky situations arise.
Let’s take a look at how the stock has been performing recently. Over the past twelve months, Sociedad Quimica y Minera de Chile S.A. (NYSE:SQM)’s stock was -26.94%. Over the last week of the month, it was -4.29%, -9.85% over the last quarter, and -17.31% for the past six months.
Over the past 50 days, Sociedad Quimica y Minera de Chile S.A. stock’s -12.44% off of the high and 5.33% removed from the low. Their 52-Week High and Low are noted here. -32.43% (High), 5.33%, (Low).
Fundamental analysis examines the financial elements of a company, for example; sales, cash flow, profit and balance sheet. These numbers are then crunched to create theoretical valuations of companies.
Earnings Per Share (EPS) is the earnings made by a company divided by their number of shares. EPS enables the earnings of a company to easily be compared to their competitors. The higher the number, the more profit per dollar is being made on investor capital. Sociedad Quimica y Minera de Chile S.A.’s EPS for the trailing 12 months is 1.79. Their EPS should be compared to other companies in the Basic Materials sector.
Price-to-Earnings Ratio is the current share price divided by annual earnings per share. P/E provides a number that details how many years of earnings it will take a stock to recoup the value of one share at current price levels. Easy to calculate and understand, P/E is an extremely common ratio that is used to compare valuations of stocks against each other relatively. Sociedad Quimica y Minera de Chile S.A.’s P/E ratio is 24.07.
Technical analysts have little regard for the value of a company. They use historic price data to observe stock price patterns to predict the direction of that price going forward. Analysts use common formulas and ratios to accomplish this.
Successful traders often craft disciplined strategies when dealing with the stock market. These strategies can range from very simple to very complex. Following a specific strategy might help keep emotions on the sidelines when trouble comes. Conducting the proper analysis before things get out of hand can help ease the burden of market turmoil because the preparation has already started. The road to becoming a good trader may be long and winding. Keeping tabs on all the macro and micro economic happenings may seem like an impossible task. Focusing on the important elements can help keep the trader directed down the right path. There is obviously a lot to be learned by studying the markets, and there are rarely any shortcuts that can be taken to lasting success in the stock market.
Sociedad Quimica y Minera de Chile S.A. (NYSE:SQM)’s RSI (Relative Strength Index) is 38.12. RSI is a technical indicator of price momentum, comparing the size of recent gains to the size of recent losses and establishes oversold and overbought positions.
Investors have a wide range of tools at their disposal when undertaking stock research. Many investors will opt to use a combination of technical and fundamental analysis. Staying on top of the stock market is no easy task. Knowing what information is important and how to interpret that information can be the difference between substantial profits and big losses. Investors are commonly trying to find a way to achieve long lasting success in the stock market. Many investors will experience temporary success that may give them false confidence down the road. Digging into the details and learning as much as possible about how markets work can be a huge help to the investor.
