Freeport-McMoRan (FCX) Falls More Steeply Than Broader Market: What Investors Need to Know
Freeport-McMoRan (FCX) ended the recent trading session at $44.53, demonstrating a -1.35% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.19%. Meanwhile, the Dow gained 0.09%, and the Nasdaq, a tech-heavy index, lost 0.36%.
Coming into today, shares of the mining company had gained 4.25% in the past month. In that same time, the Basic Materials sector gained 2.2%, while the S&P 500 gained 2.06%.
The upcoming earnings release of Freeport-McMoRan will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.45, reflecting a 15.38% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $6.45 billion, indicating a 10.81% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.65 per share and a revenue of $25.91 billion, signifying shifts of +7.14% and +13.38%, respectively, from the last year.
Any recent changes to analyst estimates for Freeport-McMoRan should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.65% lower. At present, Freeport-McMoRan boasts a Zacks Rank of #3 (Hold).
Digging into valuation, Freeport-McMoRan currently has a Forward P/E ratio of 27.31. This expresses a premium compared to the average Forward P/E of 13.55 of its industry.
One should further note that FCX currently holds a PEG ratio of 2.82. 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 0.79 at yesterday's closing price.
The Mining - Non Ferrous industry is part of the Basic Materials sector. At present, this industry carries a Zacks Industry Rank of 141, placing it within the bottom 45% of over 250 industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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
Freeport-McMoRan Inc. (FCX) : Free Stock Analysis Report