In the latest trading session, Freeport-McMoRan (FCX) closed at $62.08, marking a -3.38% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 1.62% for the day. On the other hand, the Dow registered a loss of 1.87%, and the technology-centric Nasdaq decreased by 1.98%.
The stock of mining company has fallen by 2.7% in the past month, leading the Basic Materials sector's loss of 5.57% and undershooting the S&P 500's loss of 0.03%.
The investment community will be paying close attention to the earnings performance of Freeport-McMoRan in its upcoming release. In that report, analysts expect Freeport-McMoRan to post earnings of $0.6 per share. This would mark year-over-year growth of 11.11%. Our most recent consensus estimate is calling for quarterly revenue of $6.37 billion, down 15.99% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.56 per share and a revenue of $27.24 billion, indicating changes of +44.63% and +5.12%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Freeport-McMoRan. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Freeport-McMoRan is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Freeport-McMoRan is presently being traded at a Forward P/E ratio of 25.05. This denotes a premium relative to the industry average Forward P/E of 24.6.
It's also important to note that FCX currently trades at a PEG ratio of 0.77. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Mining - Non Ferrous industry stood at 1.47 at the close of the market yesterday.
The Mining - Non Ferrous industry is part of the Basic Materials sector. At present, this industry carries a Zacks Industry Rank of 186, placing it within the bottom 24% of over 250 industries.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Freeport-McMoRan Inc. (FCX): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).