MP Materials Corp. (MP) Gains As Market Dips: What You Should Know

MP Materials Corp. (MP) closed the most recent trading day at $35.88, moving +0.45% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.3%. Meanwhile, the Dow lost 0.2%, and the Nasdaq, a tech-heavy index, lost 0.11%.

Prior to today's trading, shares of the company had lost 10.99% over the past month. This has was narrower than the Basic Materials sector's loss of 12.25% and lagged the S&P 500's loss of 0.62% in that time.

Investors will be hoping for strength from MP Materials Corp. as it approaches its next earnings release. On that day, MP Materials Corp. is projected to report earnings of $0.32 per share, which would represent year-over-year growth of 113.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $124.74 million, up 70.6% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.40 per share and revenue of $531.59 million, which would represent changes of +53.85% and +60.14%, respectively, from the prior 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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.85% higher. MP Materials Corp. is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, MP Materials Corp. is holding a Forward P/E ratio of 25.48. This represents a premium compared to its industry's average Forward P/E of 6.86.

Also, we should mention that MP has a PEG ratio of 1.39. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Mining - Miscellaneous industry currently had an average PEG ratio of 1.55 as of yesterday's close.

The Mining - Miscellaneous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 149, which puts it in the bottom 42% 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.

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

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