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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 the most recent trading day at $40.41, moving -0.96% from the previous trading session. This move lagged the S&P 500's daily loss of 0.7%. Meanwhile, the Dow lost 0.57%, and the Nasdaq, a tech-heavy index, lost 1.06%.

Coming into today, shares of the mining company had lost 4.43% in the past month. In that same time, the Basic Materials sector lost 1.13%, while the S&P 500 gained 0.58%.

Investors will be hoping for strength from Freeport-McMoRan as it approaches its next earnings release. On that day, Freeport-McMoRan is projected to report earnings of $0.38 per share, which would represent year-over-year growth of 46.15%. Meanwhile, our latest consensus estimate is calling for revenue of $5.61 billion, up 12.19% from the prior-year quarter.

FCX's full-year Zacks Consensus Estimates are calling for earnings of $1.61 per share and revenue of $23.13 billion. These results would represent year-over-year changes of -34.02% and +1.52%, respectively.

Investors might also notice recent changes to analyst estimates for Freeport-McMoRan. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 0.25% higher. Freeport-McMoRan is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Freeport-McMoRan's current valuation metrics, including its Forward P/E ratio of 25.28. Its industry sports an average Forward P/E of 20.42, so we one might conclude that Freeport-McMoRan is trading at a premium comparatively.

The Mining - Non Ferrous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 157, putting it in the bottom 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.

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


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