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MP Materials Corp. (MP) Gains But Lags Market: What You Should Know

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MP Materials Corp. (MP - Free Report) closed at $36.86 in the latest trading session, marking a +0.41% move from the prior day. This change lagged the S&P 500's 1.13% gain on the day.

Heading into today, shares of the company had gained 11.99% over the past month, outpacing the Basic Materials sector's loss of 4.51% and the S&P 500's gain of 2.39% in that time.

MP will be looking to display strength as it nears its next earnings release.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.49 per share and revenue of $227.67 million. These totals would mark changes of +81.48% and +69.51%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for MP. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 3.65% lower. MP is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, MP is holding a Forward P/E ratio of 74.41. Its industry sports an average Forward P/E of 9.68, so we one might conclude that MP is trading at a premium comparatively.

It is also worth noting that MP currently has a PEG ratio of 2.01. 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 - Miscellaneous was holding an average PEG ratio of 1.49 at yesterday's closing price.

The Mining - Miscellaneous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 121, which puts it in the top 48% 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.

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