This story originally appeared on Zacks
MP Materials Corp. (MP) closed at $41.31 in the latest trading session, marking a -0.7% move from the prior day. This change was narrower than the S&P 500’s daily loss of 0.72%. At the same time, the Dow lost 0.68%, and the tech-heavy Nasdaq lost 0.67%.
Prior to today’s trading, shares of the company had lost 1.77% over the past month. This has lagged the Basic Materials sector’s loss of 0.45% and was narrower than the S&P 500’s loss of 5.92% in that time.
Wall Street will be looking for positivity from MP Materials Corp. as it approaches its next earnings report date. This is expected to be February 24, 2022. In that report, analysts expect MP Materials Corp. to post earnings of $0.21 per share. This would mark year-over-year growth of 16.67%. Meanwhile, our latest consensus estimate is calling for revenue of $89.68 million, up 112.62% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for MP Materials Corp.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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. MP Materials Corp. currently has a Zacks Rank of #1 (Strong Buy).
Investors should also note MP Materials Corp.’s current valuation metrics, including its Forward P/E ratio of 37.48. This valuation marks a premium compared to its industry’s average Forward P/E of 9.39.
The Mining – Miscellaneous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 100, putting it in the top 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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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