Back to top

Image: Bigstock

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

Read MoreHide Full Article

Freeport-McMoRan (FCX - Free Report) closed the most recent trading day at $37.24, moving -0.75% from the previous trading session. This change lagged the S&P 500's 0.33% gain on the day.

Heading into today, shares of the mining company had lost 11.9% over the past month, lagging the Basic Materials sector's loss of 3.78% and the S&P 500's gain of 1.74% in that time.

Investors will be hoping for strength from FCX as it approaches its next earnings release. The company is expected to report EPS of $0.78, up 2500% from the prior-year quarter. 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 5.79% higher within the past month. FCX is currently a Zacks Rank #1 (Strong Buy).

Valuation is also important, so investors should note that FCX has a Forward P/E ratio of 11.78 right now. Its industry sports an average Forward P/E of 15.78, so we one might conclude that FCX is trading at a discount comparatively.

Also, we should mention that FCX has a PEG ratio of 0.41. 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 currently had an average PEG ratio of 0.59 as of yesterday's close.

The Mining - Non Ferrous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 41, putting it in the top 17% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

FreeportMcMoRan Inc. (FCX) - free report >>

Published in