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Freeport-McMoRan (FCX) Stock Sinks As Market Gains: What You Should Know

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Freeport-McMoRan (FCX - Free Report) closed the most recent trading day at $24.79, moving -0.28% from the previous trading session. This move lagged the S&P 500's daily gain of 0.35%. At the same time, the Dow added 0.23%, and the tech-heavy Nasdaq gained 0.26%.

Heading into today, shares of the mining company had gained 5.61% over the past month, lagging the Basic Materials sector's gain of 9.52% and outpacing the S&P 500's gain of 3.27% in that time.

Wall Street will be looking for positivity from FCX as it approaches its next earnings report date. In that report, analysts expect FCX to post earnings of $0.32 per share. This would mark year-over-year growth of 1500%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.01 billion, up 2.41% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.52 per share and revenue of $13.85 billion. These totals would mark changes of +2500% and -4.89%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for FCX. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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 3.31% higher. FCX is currently a Zacks Rank #3 (Hold).

Digging into valuation, FCX currently has a Forward P/E ratio of 47.81. For comparison, its industry has an average Forward P/E of 32.6, which means FCX is trading at a premium to the group.

The Mining - Non Ferrous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 222, which puts it in the bottom 13% of all 250+ industries.

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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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