Freeport-McMoRan (FCX) Laps the Stock Market: Here’s Why

Freeport-McMoRan (FCX) closed the most recent trading day at £51.93, moving +2.24% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.19%. Elsewhere, the Dow saw an upswing of 0.66%, while the tech-heavy Nasdaq depreciated by 0.03%.

Prior to today's trading, shares of the mining company had gained 13.85% outpaced the Basic Materials sector's gain of 3.51% and the S&P 500's gain of 0.54%.

The upcoming earnings release of Freeport-McMoRan will be of great interest to investors.

In that report, analysts expect Freeport-McMoRan to post earnings of £0.22 per share. This would mark a year-over-year decline of 29.03%. In the meantime, our current consensus estimate forecasts the revenue to be £4.86 billion, indicating a 14.95% decline compared to the corresponding quarter of the prior year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of £1.48 per share and revenue of £25.06 billion, indicating changes of 0% and 0%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for Freeport-McMoRan.

These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

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. Within the past 30 days, our consensus EPS projection has moved 7.18% higher. Freeport-McMoRan presently features a Zacks Rank of #3 (Hold).

Looking at its valuation, Freeport-McMoRan is holding a Forward P/E ratio of 25.52.

For comparison, its industry has an average Forward P/E of 24.36, which means Freeport-McMoRan is trading at a premium to the group.

Also, we should mention that FCX has a PEG ratio of 0.86. 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 industry had an average PEG ratio of 0.86 as trading concluded yesterday.

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

At present, this industry carries a Zacks Industry Rank of 81, placing it within the top 34% of over 250 industries.