Freeport-McMoRan (FCX) Dips More Than Broader Markets: What You Should Know

Freeport-McMoRan (FCX) closed at $34.61 in the latest trading session, marking a -1.76% move from the prior day. This change lagged the S&P 500's daily loss of 0.24%.

Prior to today's trading, shares of the mining company had lost 0.17% over the past month. This has was narrower than the Basic Materials sector's loss of 3.15% and the S&P 500's loss of 2.12% in that time.

Investors will be hoping for strength from FCX as it approaches its next earnings release, which is expected to be October 21, 2021. The company is expected to report EPS of $0.83, up 186.21% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.17 billion, up 60.34% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.97 per share and revenue of $23.05 billion, which would represent changes of +450% and +62.34%, respectively, from the prior year.

Any recent changes to analyst estimates for FCX should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.42% higher within the past month. FCX is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that FCX has a Forward P/E ratio of 11.87 right now. Its industry sports an average Forward P/E of 12.57, so we one might conclude that FCX is trading at a discount comparatively.

We can also see that FCX currently has a PEG ratio of 0.36. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Mining - Non Ferrous was holding an average PEG ratio of 0.58 at yesterday's closing price.

The Mining - Non Ferrous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 66, putting it in the top 26% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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