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Freeport-McMoRan (FCX) Gains As Market Dips: What You Should Know

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In the latest market close, Freeport-McMoRan (FCX - Free Report) reached $50.02, with a +1.11% movement compared to the previous day. This change outpaced the S&P 500's 1.2% loss on the day. Meanwhile, the Dow experienced a drop of 0.65%, and the technology-dominated Nasdaq saw a decrease of 1.79%.

The mining company's shares have seen an increase of 10.89% over the last month, surpassing the Basic Materials sector's gain of 1.63% and the S&P 500's loss of 0.85%.

Market participants will be closely following the financial results of Freeport-McMoRan in its upcoming release. The company plans to announce its earnings on April 23, 2024. It is anticipated that the company will report an EPS of $0.31, marking a 40.38% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $5.61 billion, indicating a 4.16% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $1.60 per share and revenue of $23.72 billion, which would represent changes of +3.9% and +3.76%, respectively, from the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Freeport-McMoRan. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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 4.88% increase. Right now, Freeport-McMoRan possesses a Zacks Rank of #3 (Hold).

From a valuation perspective, Freeport-McMoRan is currently exchanging hands at a Forward P/E ratio of 30.96. This signifies a premium in comparison to the average Forward P/E of 14.78 for its industry.

Also, we should mention that FCX has a PEG ratio of 2.24. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Mining - Non Ferrous industry held an average PEG ratio of 1.46.

The Mining - Non Ferrous industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 24, finds itself in the top 10% echelons 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.

Keep in mind to rely on to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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