Freeport-McMoRan (FCX) Gains But Lags Market: What You Should Know
Freeport-McMoRan (FCX) closed the most recent trading day at $28.38, moving +0.92% from the previous trading session. This move lagged the S&P 500's daily gain of 1.83%. At the same time, the Dow added 1.4%, and the tech-heavy Nasdaq gained 0.09%.
Prior to today's trading, shares of the mining company had lost 6.42% over the past month. This has lagged the Basic Materials sector's loss of 3% and the S&P 500's loss of 5.51% in that time.
Investors will be hoping for strength from Freeport-McMoRan as it approaches its next earnings release. On that day, Freeport-McMoRan is projected to report earnings of $0.57 per share, which would represent a year-over-year decline of 35.96%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.45 billion, up 6.02% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.69 per share and revenue of $24.81 billion, which would represent changes of -14.06% and +8.61%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates 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 company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. The Zacks Consensus EPS estimate has moved 12.31% lower within the past month. Freeport-McMoRan is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Freeport-McMoRan's current valuation metrics, including its Forward P/E ratio of 10.44. Its industry sports an average Forward P/E of 10.44, so we one might conclude that Freeport-McMoRan is trading at a no noticeable deviation comparatively.
Meanwhile, FCX's PEG ratio is currently 0.36. 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 industry currently had an average PEG ratio of 1.08 as of yesterday's close.
The Mining - Non Ferrous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 236, putting it in the bottom 7% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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