MP Materials Corp. (MP) Gains But Lags Market: What You Should Know
MP Materials Corp. (MP) closed at $25.31 in the latest trading session, marking a +0.24% move from the prior day. This change lagged the S&P 500's 0.67% gain on the day. Meanwhile, the Dow gained 0.93%, and the Nasdaq, a tech-heavy index, added 9.29%.
Heading into today, shares of the company had gained 16.04% over the past month, outpacing the Basic Materials sector's gain of 0.52% and the S&P 500's gain of 2.65% in that time.
Investors will be hoping for strength from MP Materials Corp. as it approaches its next earnings release. In that report, analysts expect MP Materials Corp. to post earnings of $0.07 per share. This would mark a year-over-year decline of 83.72%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $65.76 million, down 54.19% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.59 per share and revenue of $339.55 million, which would represent changes of -64.88% and -35.63%, respectively, from the prior year.
Any recent changes to analyst estimates for MP Materials Corp. should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 1.36% higher within the past month. MP Materials Corp. is currently a Zacks Rank #2 (Buy).
Looking at its valuation, MP Materials Corp. is holding a Forward P/E ratio of 43.04. This valuation marks a premium compared to its industry's average Forward P/E of 9.37.
Meanwhile, MP's PEG ratio is currently 2.65. 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. MP's industry had an average PEG ratio of 1.41 as of yesterday's close.
The Mining - Miscellaneous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 179, which puts it in the bottom 29% 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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MP Materials Corp. (MP) : Free Stock Analysis Report
