Freeport-McMoRan (FCX) Suffers a Larger Drop Than the General Market: Key Insights

The most recent trading session ended with Freeport-McMoRan (FCX) standing at £37.88, reflecting a -0.53% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily loss of 0.22%. Meanwhile, the Dow lost 0.36%, and the Nasdaq, a tech-heavy index, lost 0.16%.

The mining company's stock has dropped by 11.52% in the past month, falling short of the Basic Materials sector's loss of 9.71% and the S&P 500's loss of 2.36%.

Market participants will be closely following the financial results of Freeport-McMoRan in its upcoming release.

The company's upcoming EPS is projected at £0.38, signifying a 40.74% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of £6.06 billion, indicating a 2.65% upward movement from the same quarter last year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Freeport-McMoRan. Recent revisions tend to reflect the latest near-term business trends.

Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.04% increase.

Currently, Freeport-McMoRan is carrying a Zacks Rank of #3 (Hold).

From a valuation perspective, Freeport-McMoRan is currently exchanging hands at a Forward P/E ratio of 18.55. This expresses a discount compared to the average Forward P/E of 19.23 of its industry.

Meanwhile, FCX's PEG ratio is currently 1.93. 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.

By the end of yesterday's trading, the Mining - Non Ferrous industry had an average PEG ratio of 1.38.

The Mining - Non Ferrous industry is part of the Basic Materials sector.

This industry currently has a Zacks Industry Rank of 146, which puts it in the bottom 42% of all 250+ industries.

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