Yahoo Finance MP Materials Corp. (MP) Stock Sinks As Market Gains: What You Should Know
MP Materials Corp. (MP) closed the most recent trading day at $28.04, moving -0.53% from the previous trading session. This move lagged the S&P 500's daily gain of 0.37%. Elsewhere, the Dow gained 0.98%, while the tech-heavy Nasdaq added 0.62%.
Coming into today, shares of the company had lost 16.99% in the past month. In that same time, the Basic Materials sector gained 1.4%, while the S&P 500 gained 3.71%.
Wall Street will be looking for positivity from MP Materials Corp. as it approaches its next earnings report date. The company is expected to report EPS of $0.16, down 68% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $92.93 million, down 44.11% from the year-ago period.
MP's full-year Zacks Consensus Estimates are calling for earnings of $0.75 per share and revenue of $408.46 million. These results would represent year-over-year changes of -55.36% and -22.57%, respectively.
It is also important to note the recent changes to analyst estimates for MP Materials Corp.These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. 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 37.59. This valuation marks a premium compared to its industry's average Forward P/E of 10.71.
Also, we should mention that MP has a PEG ratio of 2.31. 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 Mining - Miscellaneous industry currently had an average PEG ratio of 2.13 as of yesterday's close.
The Mining - Miscellaneous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 161, putting it in the bottom 37% 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.
To follow MP in the coming trading sessions, be sure to utilize Zacks.com.
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MP Materials Corp. (MP) : Free Stock Analysis Report
