Freeport-McMoRan (FCX) Advances But Underperforms Market: Key Facts

In the latest market close, Freeport-McMoRan (FCX) reached $51.53, with a +0.64% movement compared to the previous day. This change lagged the S&P 500's 0.7% gain on the day. Meanwhile, the Dow gained 0.01%, and the Nasdaq, a tech-heavy index, added 1.1%.

The mining company's stock has climbed by 3.64% in the past month, exceeding the Basic Materials sector's gain of 3.13% and lagging the S&P 500's gain of 4.03%.

The investment community will be paying close attention to the earnings performance of Freeport-McMoRan in its upcoming release. The company is forecasted to report an EPS of $0.45, showcasing a 28.57% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $6.01 billion, indicating a 4.76% upward movement from the same quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.66 per share and a revenue of $24.99 billion, signifying shifts of +7.79% and +9.36%, respectively, from the last year.

Investors should also note any recent changes to analyst estimates for Freeport-McMoRan. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 1.69% rise in the Zacks Consensus EPS estimate. At present, Freeport-McMoRan boasts a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Freeport-McMoRan has a Forward P/E ratio of 30.84 right now. This denotes a premium relative to the industry's average Forward P/E of 16.19.

Investors should also note that FCX has a PEG ratio of 2.71 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Mining – Non Ferrous was holding an average PEG ratio of 0.9 at yesterday's closing price.

The Mining – Non Ferrous industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 18, finds itself in the top 8% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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Matt Earle

Matthew Earle is the Founder of MiningFeeds. In 2005, Matt founded MiningNerds.com to provide data and information to the mining investment community. This site was merged with Highgrade Review to form MiningFeeds. Matt has a B.Sc. degree with a minor in geology from the University of Toronto.

By Matt Earle

Matthew Earle is the Founder of MiningFeeds. In 2005, Matt founded MiningNerds.com to provide data and information to the mining investment community. This site was merged with Highgrade Review to form MiningFeeds. Matt has a B.Sc. degree with a minor in geology from the University of Toronto.

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