In the latest close session, Freeport-McMoRan (FCX) was down 16.95% at $37.67. The stock’s performance was behind the S&P 500’s daily loss of 0.29%. Elsewhere, the Dow saw a downswing of 0.37%, while the tech-heavy Nasdaq depreciated by 0.34%.
Shares of the mining company witnessed a gain of 2.28% over the previous month, trailing the performance of the Basic Materials sector with its gain of 4.35%, and the S&P 500’s gain of 3.08%.
Market participants will be closely following the financial results of Freeport-McMoRan in its upcoming release. The company’s earnings per share (EPS) are projected to be $0.49, reflecting a 28.95% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $6.91 billion, indicating a 1.75% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.77 per share and a revenue of $27.39 billion, representing changes of +19.59% and +7.61%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Freeport-McMoRan. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts’ positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.03% higher. Freeport-McMoRan presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Freeport-McMoRan is currently trading at a Forward P/E ratio of 25.64. This expresses a premium compared to the average Forward P/E of 25.17 of its industry.
We can also see that FCX currently has a PEG ratio of 0.85. 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 0.83 at the close of the market yesterday.
