MP Materials Corp. (MP) Outpaces Stock Market Gains: What You Should Know
MP Materials Corp. (MP) closed the most recent trading day at $24.86, moving +0.93% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.39%.
Prior to today's trading, shares of the company had gained 8.17% over the past month. This has outpaced the Basic Materials sector's gain of 2.31% and the S&P 500's gain of 3.16% in that time.
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. 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, our latest consensus estimate is calling for revenue of $61.36 million, down 57.26% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.55 per share and revenue of $338.16 million, which would represent changes of -67.26% and -35.9%, 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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 6.12% lower within the past month. MP Materials Corp. currently has a Zacks Rank of #3 (Hold).
Digging into valuation, MP Materials Corp. currently has a Forward P/E ratio of 44.78. Its industry sports an average Forward P/E of 10.02, so we one might conclude that MP Materials Corp. is trading at a premium comparatively.
Also, we should mention that MP has a PEG ratio of 2.75. 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 1.49 based on yesterday's closing prices.
The Mining - Miscellaneous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 193, which puts it in the bottom 24% 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
