MP Materials Corp. (MP) closed the most recent trading day at $27.81, moving -0.57% from the previous trading session. This change lagged the S&P 500's 0.21% loss on the day. Meanwhile, the Dow lost 0.43%, and the Nasdaq, a tech-heavy index, added 0.03%.
Heading into today, shares of the company had lost 22.13% over the past month, lagging the Basic Materials sector's loss of 14.2% and the S&P 500's loss of 9.7% in that time.
MP Materials Corp. will be looking to display strength as it nears its next earnings release. In that report, analysts expect MP Materials Corp. to post earnings of $0.34 per share. This would mark year-over-year growth of 25.93%. Our most recent consensus estimate is calling for quarterly revenue of $126.08 million, up 26.4% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.50 per share and revenue of $542.89 million. These totals would mark changes of +64.84% and +63.55%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for MP Materials Corp.These recent revisions tend to reflect the evolving nature of short-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 3.01% higher within the past month. MP Materials Corp. currently has a Zacks Rank of #3 (Hold).
Digging into valuation, MP Materials Corp. currently has a Forward P/E ratio of 18.65. This valuation marks a premium compared to its industry's average Forward P/E of 6.87.
Investors should also note that MP has a PEG ratio of 1.2 right now. 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 - Miscellaneous was holding an average PEG ratio of 1.2 at yesterday's closing price.
The Mining - Miscellaneous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 80, putting it in the top 32% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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