Back to top

Image: Bigstock

Freeport-McMoRan (FCX) Outpaces Stock Market Gains: What You Should Know

Read MoreHide Full Article

The latest trading session saw Freeport-McMoRan (FCX - Free Report) ending at $37.32, denoting a +0.4% adjustment from its last day's close. The stock outpaced the S&P 500's daily gain of 0.38%. Meanwhile, the Dow gained 1.47%, and the Nasdaq, a tech-heavy index, lost 0.23%.

Shares of the mining company witnessed a gain of 10.26% over the previous month, beating the performance of the Basic Materials sector with its gain of 7.57% and underperforming the S&P 500's gain of 10.72%.

Analysts and investors alike will be keeping a close eye on the performance of Freeport-McMoRan in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.30, showcasing a 42.31% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $5.75 billion, indicating a 0.19% decrease compared to the same quarter of the previous year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.45 per share and a revenue of $22.8 billion, signifying shifts of -40.57% and +0.07%, respectively, from the last year.

Investors should also pay attention to any latest changes in analyst estimates for Freeport-McMoRan. 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. 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 5.44% lower within the past month. Freeport-McMoRan is currently sporting a Zacks Rank of #5 (Strong Sell).

Looking at its valuation, Freeport-McMoRan is holding a Forward P/E ratio of 25.66. This expresses a premium compared to the average Forward P/E of 16.64 of its industry.

The Mining - Non Ferrous industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 231, positioning it in the bottom 9% of all 250+ industries.

The Zacks Industry Rank is ordered 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 FCX in the coming trading sessions, be sure to utilize

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

Freeport-McMoRan Inc. (FCX) - free report >>

Published in