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Freeport-McMoRan (FCX) Moves 7.9% Higher: Will This Strength Last?
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Freeport-McMoRan (FCX - Free Report) shares soared 7.9% in the last trading session to close at $48.72. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0.1% loss over the past four weeks.
FCX’s rally appears to be driven by a spike in copper and gold prices. Copper prices surged to their highest level in more than two months on improving demand in top consumer China, backed by the announcement of economic stimulus measures by the government of China to support the country’s sluggish property and construction sectors and the economy. Meanwhile, gold prices are hitting record highs on the continued momentum of the recent U.S. interest rate cut, which has weighed on the U.S. dollar.
This mining company is expected to post quarterly earnings of $0.45 per share in its upcoming report, which represents a year-over-year change of +15.4%. Revenues are expected to be $6.44 billion, up 10.7% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Freeport-McMoRan, the consensus EPS estimate for the quarter has been revised 1.1% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on FCX going forward to see if this recent jump can turn into more strength down the road.
Freeport-McMoRan is part of the Zacks Mining - Non Ferrous industry. Centrus Energy Corp. (LEU - Free Report) , another stock in the same industry, closed the last trading session 5.5% higher at $53.04. LEU has returned 30.3% in the past month.
For Centrus Energy, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.18. This represents a change of -65.4% from what the company reported a year ago. Centrus Energy currently has a Zacks Rank of #1 (Strong Buy).
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Freeport-McMoRan (FCX) Moves 7.9% Higher: Will This Strength Last?
Freeport-McMoRan (FCX - Free Report) shares soared 7.9% in the last trading session to close at $48.72. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0.1% loss over the past four weeks.
FCX’s rally appears to be driven by a spike in copper and gold prices. Copper prices surged to their highest level in more than two months on improving demand in top consumer China, backed by the announcement of economic stimulus measures by the government of China to support the country’s sluggish property and construction sectors and the economy. Meanwhile, gold prices are hitting record highs on the continued momentum of the recent U.S. interest rate cut, which has weighed on the U.S. dollar.
This mining company is expected to post quarterly earnings of $0.45 per share in its upcoming report, which represents a year-over-year change of +15.4%. Revenues are expected to be $6.44 billion, up 10.7% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Freeport-McMoRan, the consensus EPS estimate for the quarter has been revised 1.1% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on FCX going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Freeport-McMoRan is part of the Zacks Mining - Non Ferrous industry. Centrus Energy Corp. (LEU - Free Report) , another stock in the same industry, closed the last trading session 5.5% higher at $53.04. LEU has returned 30.3% in the past month.
For Centrus Energy, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.18. This represents a change of -65.4% from what the company reported a year ago. Centrus Energy currently has a Zacks Rank of #1 (Strong Buy).