MP Materials Corp. (MP) Gains As Market Dips: What You Should Know
MP Materials Corp. (MP) closed the most recent trading day at $24.14, moving +0.25% from the previous trading session. This change outpaced the S&P 500's 0.68% loss on the day. Meanwhile, the Dow gained 0.47%, and the Nasdaq, a tech-heavy index, lost 3.19%.
Coming into today, shares of the company had gained 10.06% in the past month. In that same time, the Basic Materials sector gained 2.18%, while the S&P 500 gained 3.58%.
Investors will be hoping for strength from MP Materials Corp. as it approaches its next earnings release, which is expected to be August 3, 2023. On that day, MP Materials Corp. is projected to report earnings of $0.07 per share, which would represent a year-over-year decline of 83.72%. Meanwhile, our latest consensus estimate is calling for revenue of $60.44 million, down 57.9% from the prior-year quarter.
MP's full-year Zacks Consensus Estimates are calling for earnings of $0.55 per share and revenue of $331.54 million. These results would represent year-over-year changes of -67.26% and -37.15%, respectively.
Investors might also notice recent changes to analyst estimates for MP Materials Corp.Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 6.12% lower. MP Materials Corp. is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, MP Materials Corp. is holding a Forward P/E ratio of 43.78. Its industry sports an average Forward P/E of 9.84, so we one might conclude that MP Materials Corp. is trading at a premium comparatively.
Investors should also note that MP has a PEG ratio of 2.69 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Mining - Miscellaneous stocks are, on average, holding a PEG ratio of 1.39 based on yesterday's closing prices.
The Mining - Miscellaneous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 208, putting it in the bottom 18% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
MP Materials Corp. (MP) : Free Stock Analysis Report
