Back to top

Image: Bigstock

Freeport-McMoRan (FCX) Suffers a Larger Drop Than the General Market: Key Insights

Read MoreHide Full Article

The latest trading session saw Freeport-McMoRan (FCX - Free Report) ending at $36.25, denoting a -0.88% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily loss of 0.39%. At the same time, the Dow lost 0.19%, and the tech-heavy Nasdaq lost 0.59%.

Prior to today's trading, shares of the mining company had gained 7.37% over the past month. This has outpaced the Basic Materials sector's gain of 2.7% and the S&P 500's gain of 5.08% in that time.

The investment community will be closely monitoring the performance of Freeport-McMoRan in its forthcoming earnings report. In that report, analysts expect Freeport-McMoRan to post earnings of $0.30 per share. This would mark a year-over-year decline of 42.31%. Our most recent consensus estimate is calling for quarterly revenue of $5.75 billion, down 0.19% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.45 per share and a revenue of $22.8 billion, indicating changes of -40.57% and +0.07%, respectively, from the former year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Freeport-McMoRan. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 4.5% downward. Freeport-McMoRan is holding a Zacks Rank of #5 (Strong Sell) right now.

Looking at its valuation, Freeport-McMoRan is holding a Forward P/E ratio of 25.22. Its industry sports an average Forward P/E of 17.1, so one might conclude that Freeport-McMoRan is trading at a premium comparatively.

The Mining - Non Ferrous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 237, which puts it in the bottom 6% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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