MP Materials Corp. (MP) Stock Declines While Market Improves: Some Information for Investors
The most recent trading session ended with MP Materials Corp. (MP) standing at $16.55, reflecting a -0.9% shift from the previouse trading day's closing. This change lagged the S&P 500's 0.82% gain on the day. Meanwhile, the Dow experienced a rise of 0.41%, and the technology-dominated Nasdaq saw an increase of 0.95%.
Shares of the company have depreciated by 7.38% over the course of the past month, underperforming the Basic Materials sector's loss of 4.99% and the S&P 500's gain of 5.59%.
The investment community will be paying close attention to the earnings performance of MP Materials Corp. in its upcoming release. The company is slated to reveal its earnings on February 22, 2024. The company is expected to report EPS of -$0.03, down 107.14% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $48.24 million, indicating a 48.27% decrease compared to the same quarter of the previous year.
It is also important to note the recent changes to analyst estimates for MP Materials Corp. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 19.23% lower. MP Materials Corp. is currently a Zacks Rank #4 (Sell).
Looking at its valuation, MP Materials Corp. is holding a Forward P/E ratio of 37.96. For comparison, its industry has an average Forward P/E of 12.72, which means MP Materials Corp. is trading at a premium to the group.
The Mining - Miscellaneous industry is part of the Basic Materials sector. At present, this industry carries a Zacks Industry Rank of 160, placing it within the bottom 37% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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MP Materials Corp. (MP) : Free Stock Analysis Report
