MP Materials Corp. (MP) Stock Sinks As Market Gains: What You Should Know
MP Materials Corp. (MP) closed the most recent trading day at $21.42, moving -0.09% from the previous trading session. This move lagged the S&P 500's daily gain of 0.14%. Meanwhile, the Dow gained 0.22%, and the Nasdaq, a tech-heavy index, added 0.09%.
Heading into today, shares of the company had lost 6.38% over the past month, lagging the Basic Materials sector's loss of 2.96% and the S&P 500's loss of 1.27% 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 $0.08 per share. This would mark a year-over-year decline of 77.78%. Meanwhile, our latest consensus estimate is calling for revenue of $54.51 million, down 56.2% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.55 per share and revenue of $263.28 million, which would represent changes of -67.26% and -50.09%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for MP Materials Corp.These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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 remained stagnant within the past month. MP Materials Corp. is holding a Zacks Rank of #4 (Sell) right now.
Looking at its valuation, MP Materials Corp. is holding a Forward P/E ratio of 38.98. Its industry sports an average Forward P/E of 10.2, so we one might conclude that MP Materials Corp. is trading at a premium comparatively.
Investors should also note that MP has a PEG ratio of 2.4 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MP's industry had an average PEG ratio of 1.02 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 150, which puts it in the bottom 41% 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.
To follow MP in the coming trading sessions, be sure to utilize Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
MP Materials Corp. (MP) : Free Stock Analysis Report
