MP Materials Corp. (MP) Stock Sinks As Market Gains: What You Should Know
MP Materials Corp. (MP) closed at $16.78 in the latest trading session, marking a -0.3% move from the prior day. This move lagged the S&P 500's daily gain of 1.18%. Meanwhile, the Dow experienced a rise of 0.87%, and the technology-dominated Nasdaq saw an increase of 1.6%.
Prior to today's trading, shares of the company had lost 21.5% over the past month. This has lagged the Basic Materials sector's loss of 6.48% and the S&P 500's loss of 5.17% in that time.
Market participants will be closely following the financial results of MP Materials Corp. in its upcoming release. The company is forecasted to report an EPS of $0, showcasing a 100% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $50.67 million, indicating a 59.29% decrease compared to the same quarter of the previous year.
MP's full-year Zacks Consensus Estimates are calling for earnings of $0.29 per share and revenue of $254.87 million. These results would represent year-over-year changes of -82.74% and -51.69%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for MP Materials Corp. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 has moved 25.93% lower within the past month. Right now, MP Materials Corp. possesses a Zacks Rank of #3 (Hold).
Digging into valuation, MP Materials Corp. currently has a Forward P/E ratio of 58.71. This indicates a premium in contrast to its industry's Forward P/E of 9.83.
It's also important to note that MP currently trades at a PEG ratio of 3.61. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Mining - Miscellaneous industry currently 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 bearing a Zacks Industry Rank of 160, finds itself in the bottom 37% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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MP Materials Corp. (MP) : Free Stock Analysis Report
