Back to top

Image: Bigstock

Freeport-McMoRan (FCX) Ascends While Market Falls: Some Facts to Note

Read MoreHide Full Article

In the latest market close, Freeport-McMoRan (FCX - Free Report) reached $41.61, with a +0.6% movement compared to the previous day. The stock exceeded the S&P 500, which registered a loss of 0.16% for the day. Meanwhile, the Dow gained 0.09%, and the Nasdaq, a tech-heavy index, lost 0.3%.

The the stock of mining company has risen by 0.78% in the past month, leading the Basic Materials sector's gain of 0.19% and undershooting the S&P 500's gain of 3.64%.

The investment community will be paying close attention to the earnings performance of Freeport-McMoRan in its upcoming release. On that day, Freeport-McMoRan is projected to report earnings of $0.47 per share, which would represent year-over-year growth of 20.51%. Meanwhile, our latest consensus estimate is calling for revenue of $6.34 billion, up 8.86% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $1.68 per share and revenue of $26.04 billion, which would represent changes of +9.09% and +13.96%, respectively, from the prior 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. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 0.93% higher within the past month. Freeport-McMoRan currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Freeport-McMoRan has a Forward P/E ratio of 24.61 right now. For comparison, its industry has an average Forward P/E of 11.72, which means Freeport-McMoRan is trading at a premium to the group.

One should further note that FCX currently holds a PEG ratio of 1.94. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. FCX's industry had an average PEG ratio of 0.66 as of yesterday's close.

The Mining - Non Ferrous industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 87, positioning it in the top 35% of all 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.

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


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