MP Materials Corp. (MP) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, MP Materials Corp. (MP) closed at $41.64, marking a +1.14% move from the previous day. This move outpaced the S&P 500's daily gain of 0.57%. At the same time, the Dow added 0.7%, and the tech-heavy Nasdaq lost 0.11%.
Prior to today's trading, shares of the company had lost 24.89% over the past month. This has lagged the Basic Materials sector's loss of 4.62% and the S&P 500's loss of 5.26% in that time.
Investors will be hoping for strength from MP Materials Corp. as it approaches its next earnings release. The company is expected to report EPS of $0.37, up 184.62% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $114.98 million, up 91.72% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.31 per share and revenue of $456.57 million. These totals would mark changes of +43.96% and +37.54%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for MP Materials Corp.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 0.4% higher within the past month. MP Materials Corp. is holding a Zacks Rank of #1 (Strong Buy) right now.
In terms of valuation, MP Materials Corp. is currently trading at a Forward P/E ratio of 31.55. For comparison, its industry has an average Forward P/E of 10, which means MP Materials Corp. is trading at a premium to the group.
Meanwhile, MP's PEG ratio is currently 4.72. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Mining - Miscellaneous was holding an average PEG ratio of 2.74 at yesterday's closing price.
The Mining - Miscellaneous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 51, putting it in the top 21% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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