Freeport-McMoRan (FCX) Rises Higher Than Market: Key Facts
Freeport-McMoRan (FCX) closed the latest trading day at £50.03, indicating a +0.99% change from the previous session’s end. The stock outperformed the S&P 500, which registered a daily gain of 0.61%. Meanwhile, the Dow gained 0.97%, and the Nasdaq, a tech-heavy index, added 0.33%.
Coming into today, shares of the mining company had gained 18.49% in the past month. In that same time, the Basic Materials sector gained 6.17%, while the S&P 500 gained 5.36%. The upcoming earnings release of Freeport-McMoRan will be of great interest to investors.
The company is expected to report EPS of £0.40, up 2.56% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be £6.49 billion, showing a 11.35% escalation compared to the year-ago quarter. For the full year, the Zacks Consensus Estimates are projecting earnings of £1.58 per share and revenue of £25.92 billion, which would represent changes of +2.6% and +13.42%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Freeport-McMoRan. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts’ positivity towards the company’s business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system. The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988.
Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 5.77% decrease. Freeport-McMoRan currently has a Zacks Rank of #3 (Hold). With respect to valuation, Freeport-McMoRan is currently being traded at a Forward P/E ratio of 31.28.
For comparison, its industry has an average Forward P/E of 18.24, which means Freeport-McMoRan is trading at a premium to the group. We can also see that FCX currently has a PEG ratio of 2.06. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company’s anticipated earnings growth rate.
The Mining – Non Ferrous industry had an average PEG ratio of 0.87 as trading concluded yesterday. The Mining – Non Ferrous industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 63, positioning it in the top 25% of all 250+ industries.
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The Zacks Industry Rank gauges the strength of our 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.
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References
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