Freeport-McMoRan (FCX – Free Report) shares rallied 9.3% in the last trading session to close at $38.16. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock’s 4.3% loss over the past four weeks.
FCX’s rally appears to be driven by a surge in copper prices after President Trump suggested imports of the metal would be subject to a 25% tariff. A weaker dollar coupled with China’s fresh stimulus measures also contributed to the rally in copper prices.
This mining company is expected to post quarterly earnings of $0.29 per share in its upcoming report, which represents a year-over-year change of -9.4%. Revenues are expected to be $5.54 billion, down 12.3% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Freeport-McMoRan, the consensus EPS estimate for the quarter has been revised 11.9% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn’t usually translate into price appreciation. So, make sure to keep an eye on FCX going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here >>>>
Freeport-McMoRan is part of the Zacks Mining – Non Ferrous industry. First Quantum Minerals (FQVLF – Free Report) , another stock in the same industry, closed the last trading session 10.4% higher at $12.89. FQVLF has returned -11.6% in the past month.
For First Quantum Minerals
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