Bear of the Day: Sociedad Quimica y Minera (SQM)
From Nasdaq: 2025-06-13 06:00:00
Sociedad Quimica y Minera de Chile produces specialty plant nutrients, fertilizers, lithium derivatives, and industrial chemicals. The company offers potassium chloride, sulfate, iodine, and lithium carbonates for various applications. SQM stock is a Zacks Rank #5 (Strong Sell) and part of the Zacks Chemical – Specialty industry group.
SQM has missed earnings estimates in the past four quarters, with a 23.8% earnings miss in the first quarter of 2025. Analysts have lowered second-quarter estimates by 25.97%, forecasting negative growth of -24% year-over-year. The stock has experienced significant volatility and is currently in a sustained downtrend.
Despite a history of earnings misses and deteriorating outlook, SQM shares have underperformed, falling more than 25% in the past year. Technical indicators suggest a bearish trend, with shares below key moving averages. The stock’s inclusion in a weak industry group adds further challenges to any potential rallies.
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