In the latest trading session, Freeport-McMoRan (FCX) closed at $43.31, marking a +1.07% move from the previous day. This move outpaced the S&P 500's daily loss of 0.28%. Meanwhile, the Dow lost 0.52%, and the Nasdaq, a tech-heavy index, lost 0.08%.
Shares of the mining company have depreciated by 4.52% over the course of the past month, underperforming the Basic Materials sector's gain of 0.4%, and the S&P 500's gain of 4.03%.
Market participants will be closely following the financial results of Freeport-McMoRan in its upcoming release. It is anticipated that the company will report an EPS of $0.43, marking a 13.16% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $6.57 billion, down 3.22% from the year-ago period.
FCX's full-year Zacks Consensus Estimates are calling for earnings of $1.5 per share and revenue of $24.86 billion. These results would represent year-over-year changes of +1.35% and -2.34%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Freeport-McMoRan. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 14.35% downward. Freeport-McMoRan currently has a Zacks Rank of #4 (Sell).
In the context of valuation, Freeport-McMoRan is at present trading with a Forward P/E ratio of 28.57. For comparison, its industry has an average Forward P/E of 28.57, which means Freeport-McMoRan is trading at no noticeable deviation to the group.
Investors should also note that FCX has a PEG ratio of 0.96 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Mining - Non Ferrous industry stood at 0.96 at the close of the market yesterday.
The Mining - Non Ferrous industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 26, positioning it in the top 11% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Freeport-McMoRan Inc. (FCX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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