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Freeport-McMoRan (FCX) Stock Moves -1.26%: What You Should Know

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Freeport-McMoRan (FCX - Free Report) closed at $37.68 in the latest trading session, marking a -1.26% move from the prior day. The stock exceeded the S&P 500, which registered a loss of 1.78% for the day. Elsewhere, the Dow lost 0.99%, while the tech-heavy Nasdaq lost 2.61%.

Prior to today's trading, shares of the mining company had gained 4.03% over the past month. This has outpaced the Basic Materials sector's loss of 0.13% and the S&P 500's loss of 3.48% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Freeport-McMoRan in its upcoming earnings disclosure. On that day, Freeport-McMoRan is projected to report earnings of $0.29 per share, which would represent a year-over-year decline of 9.38%. At the same time, our most recent consensus estimate is projecting a revenue of $5.54 billion, reflecting a 12.31% fall from the equivalent quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.70 per share and a revenue of $26.32 billion, signifying shifts of +14.86% and +3.41%, respectively, from the last year.

It is also important to note the recent changes to analyst estimates for Freeport-McMoRan. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.97% lower. Freeport-McMoRan is currently a Zacks Rank #3 (Hold).

In the context of valuation, Freeport-McMoRan is at present trading with a Forward P/E ratio of 22.48. Its industry sports an average Forward P/E of 16, so one might conclude that Freeport-McMoRan is trading at a premium comparatively.

Meanwhile, FCX's PEG ratio is currently 0.84. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Mining - Non Ferrous industry held an average PEG ratio of 0.81.

The Mining - Non Ferrous industry is part of the Basic Materials sector. With its current Zacks Industry Rank of 192, this industry ranks in the bottom 24% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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