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

Zacks Equity Research
·3-min read

Freeport-McMoRan (FCX) closed at $44.28 in the latest trading session, marking a -0.54% move from the prior day. This move lagged the S&P 500's daily gain of 2.14%. Meanwhile, the Dow gained 1.82%, and the Nasdaq, a tech-heavy index, lost 0.01%.

Prior to today's trading, shares of the mining company had gained 4.88% over the past month. This has outpaced the Basic Materials sector's gain of 3.08% and the S&P 500's loss of 5.01% in that time.

Wall Street will be looking for positivity from Freeport-McMoRan as it approaches its next earnings report date. The company is expected to report EPS of $0.85, up 66.67% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.23 billion, up 28.41% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.75 per share and revenue of $26.16 billion. These totals would mark changes of +19.81% and +14.53%, respectively, from last year.

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It is also important to note the recent changes to analyst estimates for Freeport-McMoRan. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.01% higher within the past month. Freeport-McMoRan is currently a Zacks Rank #3 (Hold).

Investors should also note Freeport-McMoRan's current valuation metrics, including its Forward P/E ratio of 11.89. This represents a premium compared to its industry's average Forward P/E of 10.2.

We can also see that FCX currently has a PEG ratio of 0.41. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. FCX's industry had an average PEG ratio of 0.41 as of yesterday's close.

The Mining - Non Ferrous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 236, putting it in the bottom 8% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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