MP Materials Corp. (MP) closed at $31.85 in the latest trading session, marking a -1.09% move from the prior day. This change was narrower than the S&P 500's 1.13% loss on the day. Elsewhere, the Dow lost 1.01%, while the tech-heavy Nasdaq lost 0.14%.
Prior to today's trading, shares of the company had lost 6.69% over the past month. This has lagged the Basic Materials sector's loss of 3.12% and was narrower than the S&P 500's loss of 7.59% in that time.
Investors will be hoping for strength from MP Materials Corp. as it approaches its next earnings release. The company is expected to report EPS of $0.34, up 25.93% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $124.05 million, up 24.36% from the year-ago period.
MP's full-year Zacks Consensus Estimates are calling for earnings of $1.55 per share and revenue of $542.89 million. These results would represent year-over-year changes of +70.33% and +63.55%, respectively.
Any recent changes to analyst estimates for MP Materials Corp. should also be noted by investors. These revisions help to show the ever-changing nature of 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 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. Within the past 30 days, our consensus EPS projection has moved 3.01% 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 20.82. Its industry sports an average Forward P/E of 8.13, so we one might conclude that MP Materials Corp. is trading at a premium comparatively.
Also, we should mention that MP has a PEG ratio of 1.34. 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. MP's industry had an average PEG ratio of 1.34 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 140, which puts it in the bottom 45% 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.
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