Freeport-McMoRan (FCX) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research
·3-min read

Freeport-McMoRan (FCX) closed the most recent trading day at $33.67, moving -1.09% from the previous trading session. This change lagged the S&P 500's daily loss of 0.02%.

Coming into today, shares of the mining company had lost 9.15% in the past month. In that same time, the Basic Materials sector gained 5.63%, while the S&P 500 gained 6.61%.

FCX will be looking to display strength as it nears its next earnings release, which is expected to be April 22, 2021. On that day, FCX is projected to report earnings of $0.53 per share, which would represent year-over-year growth of 431.25%. Our most recent consensus estimate is calling for quarterly revenue of $4.7 billion, up 68.01% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.58 per share and revenue of $20.87 billion. These totals would mark changes of +377.78% and +46.97%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for FCX. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. Within the past 30 days, our consensus EPS projection has moved 10.37% higher. FCX currently has a Zacks Rank of #3 (Hold).

Investors should also note FCX's current valuation metrics, including its Forward P/E ratio of 13.17. For comparison, its industry has an average Forward P/E of 16.92, which means FCX is trading at a discount to the group.

It is also worth noting that FCX currently has a PEG ratio of 0.49. 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 - Non Ferrous was holding an average PEG ratio of 0.84 at yesterday's closing price.

The Mining - Non Ferrous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 95, putting it in the top 38% 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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