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Freeport-McMoRan (FCX) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Freeport-McMoRan (FCX - Free Report) closed at $15.55, marking a -0.58% move from the previous day. This change lagged the S&P 500's 0.53% gain on the day. Elsewhere, the Dow gained 0.13%, while the tech-heavy Nasdaq added 1.42%.

Prior to today's trading, shares of the mining company had lost 3.87% over the past month. This has lagged the Basic Materials sector's loss of 1.76% and the S&P 500's loss of 3.76% in that time.

Wall Street will be looking for positivity from FCX as it approaches its next earnings report date. The company is expected to report EPS of -$0.03, down 200% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.47 billion, up 4.76% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.41 per share and revenue of $13.45 billion. These totals would mark changes of +1950% and -7.63%, respectively, from last year.

Any recent changes to analyst estimates for FCX 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 25.15% higher within the past month. FCX is holding a Zacks Rank of #2 (Buy) right now.

Digging into valuation, FCX currently has a Forward P/E ratio of 38.33. This represents a premium compared to its industry's average Forward P/E of 33.17.

The Mining - Non Ferrous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 110, which puts it in the top 44% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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