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

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Freeport-McMoRan (FCX - Free Report) closed at $30.51 in the latest trading session, marking a -0.88% move from the prior day. This change lagged the S&P 500's daily loss of 0.2%. At the same time, the Dow lost 0.14%, and the tech-heavy Nasdaq lost 0.12%.

Prior to today's trading, shares of the mining company had gained 9.46% over the past month. This has outpaced the Basic Materials sector's gain of 2.24% and the S&P 500's loss of 3.29% in that time.

Freeport-McMoRan will be looking to display strength as it nears its next earnings release. In that report, analysts expect Freeport-McMoRan to post earnings of $0.49 per share. This would mark a year-over-year decline of 44.94%. Meanwhile, our latest consensus estimate is calling for revenue of $5.45 billion, down 10.41% from the prior-year quarter.

FCX's full-year Zacks Consensus Estimates are calling for earnings of $2.69 per share and revenue of $23.17 billion. These results would represent year-over-year changes of -14.06% and +1.42%, respectively.

It is also important to note the recent changes to analyst estimates for Freeport-McMoRan. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 3.23% lower. Freeport-McMoRan is currently sporting a Zacks Rank of #5 (Strong Sell).

Investors should also note Freeport-McMoRan's current valuation metrics, including its Forward P/E ratio of 11.42. For comparison, its industry has an average Forward P/E of 10.51, which means Freeport-McMoRan is trading at a premium to the group.

It is also worth noting that FCX currently has a PEG ratio of 0.39. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Mining - Non Ferrous industry currently had an average PEG ratio of 1.18 as of yesterday's close.

The Mining - Non Ferrous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 215, which puts it in the bottom 15% 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.

To follow FCX in the coming trading sessions, be sure to utilize Zacks.com.


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