MP Materials Corp. (MP) Stock Sinks As Market Gains: What You Should Know
MP Materials Corp. (MP) closed the most recent trading day at $43.80, moving -0.34% from the previous trading session. This change lagged the S&P 500's 1.24% gain on the day. At the same time, the Dow added 1.23%, and the tech-heavy Nasdaq gained 0.15%.
Prior to today's trading, shares of the company had lost 0.09% over the past month. This has lagged the Basic Materials sector's gain of 2.36% and was narrower than the S&P 500's loss of 2.45% in that time.
MP Materials Corp. will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.34, up 161.54% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $111.11 million, up 85.27% from the year-ago period.
MP's full-year Zacks Consensus Estimates are calling for earnings of $1.17 per share and revenue of $456.57 million. These results would represent year-over-year changes of +28.57% and +37.54%, respectively.
Investors might also notice recent changes to analyst estimates for MP Materials Corp.These revisions help to show the ever-changing nature of near-term business trends. 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. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 16.54% higher within the past month. MP Materials Corp. is currently a Zacks Rank #1 (Strong Buy).
In terms of valuation, MP Materials Corp. is currently trading at a Forward P/E ratio of 37.72. This valuation marks a premium compared to its industry's average Forward P/E of 10.35.
Meanwhile, MP's PEG ratio is currently 5.65. 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. The Mining - Miscellaneous industry currently had an average PEG ratio of 3.02 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 96, which puts it in the top 38% 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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