In the latest trading session, Freeport-McMoRan (FCX) closed at $44.08, marking a -0.47% move from the previous day. This move was narrower than the S&P 500’s daily loss of 0.97%. Elsewhere, the Dow lost 0.96%, while the tech-heavy Nasdaq added 0.23%.
Heading into today, shares of the mining company had gained 13.04% over the past month, outpacing the Basic Materials sector’s gain of 5.24% and the S&P 500’s loss of 0.78% in that time.
Investors will be hoping for strength from Freeport-McMoRan as it approaches its next earnings release, which is expected to be January 26, 2022. On that day, Freeport-McMoRan is projected to report earnings of $0.98 per share, which would represent year-over-year growth of 157.89%. Meanwhile, our latest consensus estimate is calling for revenue of $6.69 billion, up 48.73% from the prior-year quarter.
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. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 13.36% higher within the past month. Freeport-McMoRan currently has a Zacks Rank of #2 (Buy).
In terms of valuation, Freeport-McMoRan is currently trading at a Forward P/E ratio of 10.64. This valuation marks a no noticeable deviation compared to its industry’s average Forward P/E of 10.64.
It is also worth noting that FCX currently has a PEG ratio of 0.36. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The Mining – Non Ferrous was holding an average PEG ratio of 0.36 at yesterday’s closing price.
The Mining – Non Ferrous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 88, putting it in the top 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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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