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MP Materials Corp. (MP) Dips More Than Broader Markets: What You Should Know

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MP Materials Corp. (MP - Free Report) closed at $32.08 in the latest trading session, marking a -1.87% move from the prior day. This change lagged the S&P 500's 1.11% loss on the day. At the same time, the Dow lost 0.61%, and the tech-heavy Nasdaq lost 2.13%.

Coming into today, shares of the company had gained 17.34% in the past month. In that same time, the Basic Materials sector gained 4.33%, while the S&P 500 gained 7%.

MP Materials Corp. will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.15, down 51.61% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $88.38 million, down 10.83% from the year-ago period.

It is also important to note the recent changes to analyst estimates for MP Materials Corp.These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. The Zacks Consensus EPS estimate has moved 0.82% lower within the past month. MP Materials Corp. currently has a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that MP Materials Corp. has a Forward P/E ratio of 30.1 right now. This represents a premium compared to its industry's average Forward P/E of 10.47.

Meanwhile, MP's PEG ratio is currently 1.85. 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. The Mining - Miscellaneous industry currently had an average PEG ratio of 1.93 as of yesterday's close.

The Mining - Miscellaneous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 70, putting it in the top 28% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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


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