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Freeport-McMoRan (FCX) Dips More Than Broader Markets: What You Should Know

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Freeport-McMoRan (FCX - Free Report) closed the most recent trading day at $41.62, moving -0.62% from the previous trading session. This change lagged the S&P 500's daily loss of 0.14%. Meanwhile, the Dow lost 0.45%, and the Nasdaq, a tech-heavy index, lost 0.02%.

Heading into today, shares of the mining company had gained 9.15% over the past month, outpacing the Basic Materials sector's gain of 3.29% and the S&P 500's loss of 0.13% in that time.

Investors will be hoping for strength from Freeport-McMoRan as it approaches its next earnings release, which is expected to be January 26, 2022. In that report, analysts expect Freeport-McMoRan to post earnings of $0.93 per share. This would mark year-over-year growth of 144.74%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.71 billion, up 49.2% from the year-ago period.

It is also important to note the recent changes to analyst estimates for Freeport-McMoRan. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 14.2% higher. Freeport-McMoRan currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Freeport-McMoRan currently has a Forward P/E ratio of 10.41. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 10.41.

We can also see that FCX currently has a PEG ratio of 0.36. 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 0.36 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 169, putting it in the bottom 34% 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.

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


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