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Why the Market Dipped But Freeport-McMoRan (FCX) Gained Today

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The latest trading session saw Freeport-McMoRan (FCX - Free Report) ending at $40.42, denoting a +1.43% adjustment from its last day's close. This move outpaced the S&P 500's daily loss of 0.11%. On the other hand, the Dow registered a gain of 0.12%, and the technology-centric Nasdaq decreased by 0.41%.

Prior to today's trading, shares of the mining company had gained 6.66% over the past month. This has outpaced the Basic Materials sector's gain of 4.98% and the S&P 500's gain of 2.7% in that time.

The investment community will be paying close attention to the earnings performance of Freeport-McMoRan in its upcoming release. On that day, Freeport-McMoRan is projected to report earnings of $0.36 per share, which would represent a year-over-year decline of 30.77%. Meanwhile, our latest consensus estimate is calling for revenue of $5.64 billion, up 4.75% from the prior-year quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.52 per share and a revenue of $23.19 billion, indicating changes of -1.3% and +1.48%, respectively, from the former year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Freeport-McMoRan. 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. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 4.47% increase. Right now, Freeport-McMoRan possesses a Zacks Rank of #3 (Hold).

In terms of valuation, Freeport-McMoRan is presently being traded at a Forward P/E ratio of 26.16. This indicates a premium in contrast to its industry's Forward P/E of 14.81.

The Mining - Non Ferrous industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 210, finds itself in the bottom 17% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. 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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