In the latest trading session, Freeport-McMoRan (FCX) closed at $41.99, marking no change from the previous day. This change was narrower than the S&P 500’s daily loss of 0.1%. Elsewhere, the Dow gained 0.26%, while the tech-heavy Nasdaq lost 0.1%.
Prior to today’s trading, shares of the mining company had gained 10.56% over the past month. This has outpaced the Basic Materials sector’s gain of 4.32% and the S&P 500’s gain of 4.4% in that time.
Investors will be hoping for strength from Freeport-McMoRan as it approaches its next earnings release. On that day, Freeport-McMoRan is projected to report earnings of $0.88 per share, which would represent year-over-year growth of 131.58%. Our most recent consensus estimate is calling for quarterly revenue of $6.71 billion, up 49.2% from the year-ago period.
FCX’s full-year Zacks Consensus Estimates are calling for earnings of $3.09 per share and revenue of $23.46 billion. These results would represent year-over-year changes of +472.22% and +65.2%, respectively.
Investors might also notice recent changes to analyst estimates for Freeport-McMoRan. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Within the past 30 days, our consensus EPS projection has moved 3.42% higher. Freeport-McMoRan is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Freeport-McMoRan is holding a Forward P/E ratio of 13.6. This represents a premium compared to its industry’s average Forward P/E of 11.65.
Investors should also note that FCX has a PEG ratio of 0.47 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. The Mining – Non Ferrous industry currently had an average PEG ratio of 0.47 as of yesterday’s close.
The Mining – Non Ferrous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 187, putting it in the bottom 27% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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