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Freeport-McMoRan (FCX) Gains But Lags Market: What You Should Know

In the latest trading session, Freeport-McMoRan (FCX) closed at $38.04, marking a +1.14% move from the previous day. This move lagged the S&P 500's daily gain of 1.68%. Meanwhile, the Dow gained 1.06%, and the Nasdaq, a tech-heavy index, lost 1.7%.

Coming into today, shares of the mining company had lost 10.69% in the past month. In that same time, the Basic Materials sector lost 4.99%, while the S&P 500 lost 6.68%.

Investors will be hoping for strength from Freeport-McMoRan as it approaches its next earnings release. The company is expected to report EPS of $0.44, down 58.88% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.36 billion, down 18.88% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.98 per share and revenue of $23.11 billion, which would represent changes of -18.85% and +1.44%, respectively, from the prior year.

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Any recent changes to analyst estimates for Freeport-McMoRan should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate has moved 1.33% higher within the past month. Freeport-McMoRan is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Freeport-McMoRan currently has a Forward P/E ratio of 19.01. This represents a premium compared to its industry's average Forward P/E of 15.99.

The Mining - Non Ferrous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 191, putting it in the bottom 25% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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Freeport-McMoRan Inc. (FCX) : Free Stock Analysis Report

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