Freeport-McMoRan (FCX) ended the recent trading session at $43.35, demonstrating a -1.19% change from the preceding day's closing price. This move lagged the S&P 500's daily gain of 0.52%. Elsewhere, the Dow gained 0.63%, while the tech-heavy Nasdaq added 0.48%.
Coming into today, shares of the mining company had gained 14.01% in the past month. In that same time, the Basic Materials sector gained 2.15%, while the S&P 500 gained 4.27%.
The upcoming earnings release of Freeport-McMoRan will be of great interest to investors. It is anticipated that the company will report an EPS of $0.46, marking stability compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $6.86 billion, indicating a 3.5% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.69 per share and revenue of $27.03 billion. These totals would mark changes of +14.19% and +6.2%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Freeport-McMoRan. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.6% higher. At present, Freeport-McMoRan boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, Freeport-McMoRan is currently exchanging hands at a Forward P/E ratio of 25.93. Its industry sports an average Forward P/E of 23.43, so one might conclude that Freeport-McMoRan is trading at a premium comparatively.
We can also see that FCX currently has a PEG ratio of 0.85. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Mining - Non Ferrous industry held an average PEG ratio of 0.88.
The Mining - Non Ferrous industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 154, finds itself in the bottom 38% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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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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