MP Materials Corp. (MP) closed the most recent trading day at $37.56, moving -0.37% from the previous trading session. This change lagged the S&P 500's 0.75% gain on the day.
Heading into today, shares of the company had gained 20.22% over the past month, outpacing the Basic Materials sector's loss of 6.8% and the S&P 500's gain of 2.91% in that time.
Investors will be hoping for strength from MP as it approaches its next earnings release.
MP's full-year Zacks Consensus Estimates are calling for earnings of $0.49 per share and revenue of $227.67 million. These results would represent year-over-year changes of +81.48% and +69.51%, respectively.
It is also important to note the recent changes to analyst estimates for MP. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.65% lower within the past month. MP is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, MP currently has a Forward P/E ratio of 76.42. For comparison, its industry has an average Forward P/E of 9.76, which means MP is trading at a premium to the group.
It is also worth noting that MP currently has a PEG ratio of 2.06. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. MP's industry had an average PEG ratio of 1.55 as of yesterday's close.
The Mining - Miscellaneous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 106, putting it in the top 42% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
