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MP Materials Corp. (MP) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, MP Materials Corp. (MP - Free Report) closed at $21.86, marking a -1.44% move from the previous day. This move lagged the S&P 500's daily gain of 0.12%. At the same time, the Dow added 0.13%, and the tech-heavy Nasdaq lost 4.09%.

Heading into today, shares of the company had gained 2.12% over the past month, outpacing the Basic Materials sector's loss of 1.25% and lagging the S&P 500's gain of 3.98% in that time.

MP Materials Corp. will be looking to display strength as it nears its next earnings release. On that day, MP Materials Corp. is projected to report earnings of $0.16 per share, which would represent a year-over-year decline of 62.79%. Our most recent consensus estimate is calling for quarterly revenue of $73.72 million, down 48.65% from the year-ago period.

MP's full-year Zacks Consensus Estimates are calling for earnings of $0.74 per share and revenue of $358.37 million. These results would represent year-over-year changes of -55.95% and -32.06%, respectively.

Investors should also note any recent changes to analyst estimates for MP Materials Corp.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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 remained stagnant. MP Materials Corp. currently has a Zacks Rank of #3 (Hold).

Investors should also note MP Materials Corp.'s current valuation metrics, including its Forward P/E ratio of 29.97. Its industry sports an average Forward P/E of 9.4, so we one might conclude that MP Materials Corp. is trading at a premium comparatively.

It is also worth noting that MP currently has a PEG ratio of 1.84. 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. MP's industry had an average PEG ratio of 1.77 as of yesterday's close.

The Mining - Miscellaneous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 178, which puts it in the bottom 30% 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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