MP Materials Corp. (MP) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, MP Materials Corp. (MP) closed at $31.04, marking a -1.65% move from the previous day. This move lagged the S&P 500's daily gain of 0.16%. At the same time, the Dow lost 0.42%, and the tech-heavy Nasdaq gained 0.48%.
Prior to today's trading, shares of the company had lost 21.3% over the past month. This has was narrower than the Basic Materials sector's loss of 23.51% and lagged the S&P 500's loss of 6.79% in that time.
Wall Street will be looking for positivity from MP Materials Corp. as it approaches its next earnings report date. On that day, MP Materials Corp. is projected to report earnings of $0.32 per share, which would represent year-over-year growth of 113.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $124.74 million, up 70.6% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.40 per share and revenue of $531.59 million. These totals would mark changes of +53.85% and +60.14%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for MP Materials Corp.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 6.45% higher within the past month. MP Materials Corp. is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, MP Materials Corp. is currently trading at a Forward P/E ratio of 22.52. This valuation marks a premium compared to its industry's average Forward P/E of 6.96.
Meanwhile, MP's PEG ratio is currently 1.23. 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 1.43 at yesterday's closing price.
The Mining - Miscellaneous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 136, which puts it in the bottom 47% 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.
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