MP Materials Corp. (MP) closed at $34.76 in the latest trading session, marking a -0.4% move from the prior day. This change lagged the S&P 500's daily gain of 0.33%.
Coming into today, shares of the company had gained 24.42% in the past month. In that same time, the Basic Materials sector lost 3.78%, while the S&P 500 gained 1.74%.
Investors will be hoping for strength from MP as it approaches its next earnings release.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.49 per share and revenue of $227.67 million. These totals would mark changes of +81.48% and +69.51%, respectively, from last year.
Any recent changes to analyst estimates for MP should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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, 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 3.65% lower. MP currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, MP is holding a Forward P/E ratio of 70.74. This represents a premium compared to its industry's average Forward P/E of 10.72.
Also, we should mention that MP has a PEG ratio of 1.91. 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. MP's industry had an average PEG ratio of 1.91 as of yesterday's close.
The Mining - Miscellaneous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 168, putting it in the bottom 34% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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