Freeport-McMoRan (FCX) closed the most recent trading day at $41.33, moving -0.93% from the previous trading session. This move was narrower than the S&P 500’s daily loss of 1.64%. At the same time, the Dow lost 1.05%, and the tech-heavy Nasdaq lost 0.41%.
Prior to today’s trading, shares of the mining company had gained 5.25% over the past month. This has outpaced the Basic Materials sector’s gain of 3.76% and the S&P 500’s gain of 0.73% in that time.
Investors will be hoping for strength from Freeport-McMoRan as it approaches its next earnings release. In that report, analysts expect Freeport-McMoRan to post earnings of $0.95 per share. This would mark year-over-year growth of 23.38%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.6 billion, up 14.88% from the year-ago period.
FCX’s full-year Zacks Consensus Estimates are calling for earnings of $3.90 per share and revenue of $26.51 billion. These results would represent year-over-year changes of +24.6% and +16.03%, respectively.
Investors might also notice recent changes to analyst estimates for Freeport-McMoRan. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. The Zacks Consensus EPS estimate has moved 0.6% higher within the past month. Freeport-McMoRan is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Freeport-McMoRan’s current valuation metrics, including its Forward P/E ratio of 10.7. For comparison, its industry has an average Forward P/E of 8.18, which means Freeport-McMoRan is trading at a premium to the group.
Investors should also note that FCX has a PEG ratio of 0.37 right now. 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. Mining – Non Ferrous stocks are, on average, holding a PEG ratio of 1.13 based on yesterday’s closing prices.
The Mining – Non Ferrous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 73, putting it in the top 29% 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.
To follow FCX in the coming trading sessions, be sure to utilize Zacks.com.
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