MP Materials Corp. (MP) Increases Despite Market Slip: Here's What You Need to Know
The latest trading session saw MP Materials Corp. (MP) ending at $16.93, denoting a +0.71% adjustment from its last day's close. The stock outpaced the S&P 500's daily loss of 0.5%. Elsewhere, the Dow gained 0.12%, while the tech-heavy Nasdaq lost 1.23%.
Coming into today, shares of the company had lost 25.62% in the past month. In that same time, the Basic Materials sector lost 5.28%, while the S&P 500 lost 2.4%.
Market participants will be closely following the financial results of MP Materials Corp. in its upcoming release. The company plans to announce its earnings on November 2, 2023. The company is forecasted to report an EPS of $0, showcasing a 100% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $50.67 million, reflecting a 59.29% fall from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.29 per share and a revenue of $254.87 million, representing changes of -82.74% and -51.69%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for MP Materials Corp. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 25.93% decrease. MP Materials Corp. currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, MP Materials Corp. is holding a Forward P/E ratio of 58.64. For comparison, its industry has an average Forward P/E of 10.17, which means MP Materials Corp. is trading at a premium to the group.
One should further note that MP currently holds a PEG ratio of 3.61. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Mining - Miscellaneous industry was having an average PEG ratio of 1.2.
The Mining - Miscellaneous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 184, putting it in the bottom 27% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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MP Materials Corp. (MP) : Free Stock Analysis Report
