Methanex (MEOH) shares ended the last trading session 6.4% higher at $53.01. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 5.5% gain over the past four weeks.
Optimism over favorable methanol industry conditions underpinned by healthy demand for methanol in energy applications in China is driving the stock higher. Higher average realized methanol prices are also likely to support first-quarter 2026 profits.
This methanol supplier is expected to post quarterly earnings of $0.92 per share in its upcoming report, which represents a year-over-year change of -29.2%. Revenues are expected to be $1.02 billion, up 13.7% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Methanex, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on MEOH going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Methanex is a member of the Zacks Chemical - Diversified industry. One other stock in the same industry, LyondellBasell (LYB), finished the last trading session 0.4% lower at $66.82. LYB has returned 21.8% over the past month.
LyondellBasell's consensus EPS estimate for the upcoming report has changed -21.5% over the past month to $0.26. Compared to the company's year-ago EPS, this represents a change of -21.2%. LyondellBasell currently boasts a Zacks Rank of #3 (Hold).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Methanex Corporation (MEOH): Free Stock Analysis Report LyondellBasell Industries N.V. (LYB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
