Freeport-McMoRan (FCX – Free Report) closed the latest trading day at $39.51, indicating a +1.7% change from the previous session’s end. The stock exceeded the S&P 500, which registered a gain of 0.64% for the day. On the other hand, the Dow registered a gain of 0.85%, and the technology-centric Nasdaq increased by 0.31%.
The mining company’s stock has dropped by 1.57% in the past month, exceeding the Basic Materials sector’s loss of 1.92% and the S&P 500’s loss of 7.69%.
The upcoming earnings release of Freeport-McMoRan will be of great interest to investors. The company’s earnings per share (EPS) are projected to be $0.29, reflecting a 9.38% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $5.47 billion, showing a 13.46% drop compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.70 per share and a revenue of $26.33 billion, signifying shifts of +14.86% and +3.45%, respectively, from the last year.
Any recent changes to analyst estimates for Freeport-McMoRan should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts’ positivity towards the company’s business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we’ve established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.21% higher. As of now, Freeport-McMoRan holds a Zacks Rank of #3 (Hold).
With respect to valuation, Freeport-McMoRan is currently being traded at a Forward P/E ratio of 22.88. Its industry sports an average Forward P/E of 18.26, so one might conclude that Freeport-McMoRan is trading at a premium comparatively.
We can additionally observe that FCX currently boasts a PEG ratio of 0.86. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. The Mining – Non Ferrous industry had an average PEG ratio of 0.84 as trading concluded yesterday.
The Mining – Non Ferrous industry is part of the Basic Materials sector. At present, this industry carries a Zacks Industry Rank of 182, placing it within the bottom 28% of over 250 industries.
The Zacks Industry Rank is ordered 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.
Don’t forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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