Back to top

Image: Bigstock

Freeport-McMoRan (FCX) Stock Drops Despite Market Gains: Important Facts to Note

Read MoreHide Full Article

Freeport-McMoRan (FCX - Free Report) closed the latest trading day at $41.30, indicating a -0.96% change from the previous session's end. The stock's performance was behind the S&P 500's daily gain of 0.57%. Meanwhile, the Dow gained 0.46%, and the Nasdaq, a tech-heavy index, added 0.75%.

Prior to today's trading, shares of the mining company had gained 11.44% over the past month. This has outpaced the Basic Materials sector's gain of 2.16% and the S&P 500's gain of 3.4% in that time.

The investment community will be paying close attention to the earnings performance of Freeport-McMoRan in its upcoming release. The company is slated to reveal its earnings on January 24, 2024. In that report, analysts expect Freeport-McMoRan to post earnings of $0.25 per share. This would mark a year-over-year decline of 51.92%. Meanwhile, the latest consensus estimate predicts the revenue to be $5.84 billion, indicating a 1.44% increase compared to the same quarter of the previous year.

Investors should also pay attention to any latest changes in analyst estimates for Freeport-McMoRan. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.44% downward. At present, Freeport-McMoRan boasts a Zacks Rank of #3 (Hold).

Investors should also note Freeport-McMoRan's current valuation metrics, including its Forward P/E ratio of 24.85. This denotes a premium relative to the industry's average Forward P/E of 20.09.

The Mining - Non Ferrous industry is part of the Basic Materials sector. At present, this industry carries a Zacks Industry Rank of 167, placing it within the bottom 34% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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