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

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Freeport-McMoRan (FCX - Free Report) closed at $37.52 in the latest trading session, marking a +0.91% move from the prior day. This move outpaced the S&P 500's daily gain of 0.58%.

Coming into today, shares of the mining company had lost 10.02% in the past month. In that same time, the Basic Materials sector lost 4.41%, while the S&P 500 gained 2.17%.

FCX will be looking to display strength as it nears its next earnings release. On that day, FCX is projected to report earnings of $0.78 per share, which would represent year-over-year growth of 2500%. Our most recent consensus estimate is calling for quarterly revenue of $5.91 billion, up 93.66% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.19 per share and revenue of $23.51 billion, which would represent changes of +490.74% and +65.62%, respectively, from the prior year.

Any recent changes to analyst estimates for FCX should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate has moved 10.51% higher. FCX is holding a Zacks Rank of #1 (Strong Buy) right now.

Investors should also note FCX's current valuation metrics, including its Forward P/E ratio of 11.67. This represents a discount compared to its industry's average Forward P/E of 15.99.

Investors should also note that FCX has a PEG ratio of 0.41 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. The Mining - Non Ferrous was holding an average PEG ratio of 0.58 at yesterday's closing price.

The Mining - Non Ferrous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 37, putting it in the top 15% 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.

To follow FCX in the coming trading sessions, be sure to utilize Zacks.com.


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