Freeport-McMoRan (FCX) closed at $17.21 in the latest trading session, marking a +1.59% move from the prior day. This change outpaced the S&P 500’s 0.15% loss on the day. Elsewhere, the Dow lost 0.07%, while the tech-heavy Nasdaq lost 0.47%.
Prior to today’s trading, shares of the mining company had gained 0.95% over the past month. This has outpaced the Basic Materials sector’s loss of 0.93% and lagged the S&P 500’s gain of 3.19% in that time.
Investors will be hoping for strength from FCX as it approaches its next earnings release, which is expected to be October 22, 2020. On that day, FCX is projected to report earnings of $0.23 per share, which would represent year-over-year growth of 2400%. Our most recent consensus estimate is calling for quarterly revenue of $3.75 billion, up 13.3% from the year-ago period.
FCX’s full-year Zacks Consensus Estimates are calling for earnings of $0.46 per share and revenue of $13.73 billion. These results would represent year-over-year changes of +2200% and -5.66%, respectively.
Investors should also note any recent changes to analyst estimates for FCX. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 31.61% higher. FCX currently has a Zacks Rank of #3 (Hold).
In terms of valuation, FCX is currently trading at a Forward P/E ratio of 36.99. For comparison, its industry has an average Forward P/E of 33.45, which means FCX is trading at a premium to the group.
The Mining – Non Ferrous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 104, which puts it in the top 42% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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