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MP Materials Corp. (MP) Gains But Lags Market: What You Should Know

MP Materials Corp. (MP) closed the most recent trading day at $21.62, moving +0.42% from the previous trading session. This move lagged the S&P 500's daily gain of 1.96%. Meanwhile, the Dow gained 1.57%, and the Nasdaq, a tech-heavy index, lost 3.03%.

Heading into today, shares of the company had lost 22.67% over the past month, lagging the Basic Materials sector's gain of 0.17% and the S&P 500's gain of 2.19% in that time.

Investors will be hoping for strength from MP Materials Corp. as it approaches its next earnings release, which is expected to be May 4, 2023. The company is expected to report EPS of $0.19, down 62% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $90.89 million, down 45.33% from the year-ago period.

MP's full-year Zacks Consensus Estimates are calling for earnings of $0.74 per share and revenue of $384.17 million. These results would represent year-over-year changes of -55.95% and -27.17%, respectively.

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It is also important to note the recent changes to analyst estimates for MP Materials Corp.These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate has moved 2.29% lower. MP Materials Corp. is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, MP Materials Corp. is currently trading at a Forward P/E ratio of 29.09. This valuation marks a premium compared to its industry's average Forward P/E of 9.23.

Also, we should mention that MP has a PEG ratio of 1.79. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Mining - Miscellaneous was holding an average PEG ratio of 1.79 at yesterday's closing price.

The Mining - Miscellaneous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 162, which puts it in the bottom 36% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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MP Materials Corp. (MP) : Free Stock Analysis Report

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