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Freeport-McMoRan (FCX) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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In the latest trading session, Freeport-McMoRan (FCX - Free Report) closed at $41.70, marking a -1.18% move from the previous day. This move lagged the S&P 500's daily loss of 0.15%. Meanwhile, the Dow experienced a drop of 0.42%, and the technology-dominated Nasdaq saw an increase of 0.09%.

Coming into today, shares of the mining company had gained 11.43% in the past month. In that same time, the Basic Materials sector gained 3.91%, while the S&P 500 gained 3.5%.

The investment community will be closely monitoring the performance of Freeport-McMoRan in its forthcoming earnings report. The company is scheduled to release its earnings on January 24, 2024. The company is expected to report EPS of $0.25, down 51.92% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $5.84 billion, indicating a 1.44% growth compared to the corresponding quarter of the prior year.

Any recent changes to analyst estimates for Freeport-McMoRan should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.44% decrease. Currently, Freeport-McMoRan is carrying a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Freeport-McMoRan has a Forward P/E ratio of 25.15 right now. This represents a premium compared to its industry's average Forward P/E of 19.57.

The Mining - Non Ferrous industry is part of the Basic Materials sector. With its current Zacks Industry Rank of 221, this industry ranks in the bottom 13% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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