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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 $36.21 in the latest trading session, marking a +0.58% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.34%.

Prior to today's trading, shares of the mining company had lost 13% over the past month. This has lagged the Basic Materials sector's loss of 4.99% and the S&P 500's gain of 2.71% in that time.

Investors will be hoping for strength from FCX as it approaches its next earnings release. In that report, analysts expect FCX to post earnings of $0.73 per share. This would mark year-over-year growth of 2333.33%. Meanwhile, our latest consensus estimate is calling for revenue of $5.84 billion, up 91.09% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.16 per share and revenue of $23.43 billion, which would represent changes of +485.19% and +65.06%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for FCX. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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. The Zacks Consensus EPS estimate has moved 3.02% higher within the past month. FCX is currently a Zacks Rank #1 (Strong Buy).

Investors should also note FCX's current valuation metrics, including its Forward P/E ratio of 11.38. Its industry sports an average Forward P/E of 15.25, so we one might conclude that FCX is trading at a discount comparatively.

Also, we should mention that FCX has a PEG ratio of 0.4. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Mining - Non Ferrous stocks are, on average, holding a PEG ratio of 0.57 based on yesterday's closing prices.

The Mining - Non Ferrous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 59, putting it in the top 24% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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