Why Freeport-McMoRan (FCX) Outpaced the Stock Market Today
Freeport-McMoRan (FCX) closed the most recent trading day at $38.16, moving +0.34% from the previous trading session. This change outpaced the S&P 500's 0.17% gain on the day. Elsewhere, the Dow lost 0.25%, while the tech-heavy Nasdaq added 0.37%.
Coming into today, shares of the mining company had lost 5.47% in the past month. In that same time, the Basic Materials sector lost 0.56%, while the S&P 500 gained 3.8%.
The investment community will be closely monitoring the performance of Freeport-McMoRan in its forthcoming earnings report. On that day, Freeport-McMoRan is projected to report earnings of $0.37 per share, which would represent a year-over-year decline of 28.85%. Meanwhile, the latest consensus estimate predicts the revenue to be $5.64 billion, indicating a 4.75% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.51 per share and revenue of $23.19 billion, indicating changes of -1.95% and +1.48%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Freeport-McMoRan. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 1.6% higher within the past month. Freeport-McMoRan currently has a Zacks Rank of #3 (Hold).
With respect to valuation, Freeport-McMoRan is currently being traded at a Forward P/E ratio of 25.13. This valuation marks a premium compared to its industry's average Forward P/E of 14.56.
The Mining - Non Ferrous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 196, which puts it in the bottom 23% of all 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.
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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Freeport-McMoRan Inc. (FCX) : Free Stock Analysis Report
