In the latest close session, Freeport-McMoRan (FCX) was up +1.97% at $42.98. The stock outperformed the S&P 500, which registered a daily gain of 0.54%. On the other hand, the Dow registered a gain of 0.61%, and the technology-centric Nasdaq increased by 0.65%.
Heading into today, shares of the mining company had gained 1.01% over the past month, lagging the Basic Materials sector's gain of 2.54% and outpacing the S&P 500's loss of 0.8%.
Investors will be eagerly watching for the performance of Freeport-McMoRan in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.19, showcasing a 38.71% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $4.75 billion, indicating a 16.92% downward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.49 per share and a revenue of $24.98 billion, indicating changes of +0.68% and -1.87%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Freeport-McMoRan. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.09% higher. Freeport-McMoRan is currently a Zacks Rank #3 (Hold).
In the context of valuation, Freeport-McMoRan is at present trading with a Forward P/E ratio of 28.24. Its industry sports an average Forward P/E of 28.24, so one might conclude that Freeport-McMoRan is trading at no noticeable deviation comparatively.
Meanwhile, FCX's PEG ratio is currently 0.95. 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 0.95 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 50, placing it within the top 21% of over 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.
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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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