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Freeport-McMoRan (FCX) Increases Despite Market Slip: Here's What You Need to Know

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Freeport-McMoRan (FCX - Free Report) closed at $53.04 in the latest trading session, marking a +2.16% move from the prior day. The stock exceeded the S&P 500, which registered a loss of 0.03% for the day. Elsewhere, the Dow lost 0.04%, while the tech-heavy Nasdaq lost 0.09%.

Prior to today's trading, shares of the mining company had gained 23.18% outpaced the Basic Materials sector's gain of 9.22% and the S&P 500's gain of 2.57%.

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 $0.2 per share, which would represent a year-over-year decline of 35.48%. At the same time, our most recent consensus estimate is projecting a revenue of $4.86 billion, reflecting a 14.95% fall from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $1.48 per share and a revenue of $25.06 billion, demonstrating changes of 0% and -1.55%, respectively, from the preceding 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 business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 0.63% lower within the past month. As of now, Freeport-McMoRan holds a Zacks Rank of #3 (Hold).

From a valuation perspective, Freeport-McMoRan is currently exchanging hands at a Forward P/E ratio of 34.99. For comparison, its industry has an average Forward P/E of 32, which means Freeport-McMoRan is trading at a premium to the group.

We can additionally observe that FCX currently boasts a PEG ratio of 1.17. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Mining - Non Ferrous industry held an average PEG ratio of 1.17.

The Mining - Non Ferrous industry is part of the Basic Materials sector. With its current Zacks Industry Rank of 102, this industry ranks in the top 42% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.


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