Surging Earnings Estimates Signal Upside for Freeport-McMoRan (FCX) Stock

Investors might want to bet on Freeport-McMoRan (FCX), as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.The upward trend in estimate revisions for this mining company reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core.The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.For Freeport-McMoRan, strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates for the next quarter and full year.The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:12 Month EPSCurrent-Quarter Estimate RevisionsThe company is expected to earn $0.49 per share for the current quarter, which represents a year-over-year change of +104.2%.Over the last 30 days, the Zacks Consensus Estimate for Freeport-McMoRan has increased 7.26% because four estimates have moved higher compared to no negative revisions.Current-Year Estimate RevisionsThe company is expected to earn $2.40 per share for the full year, which represents a change of +35.6% from the prior-year number.In terms of estimate revisions, the trend for the current year also appears quite encouraging for Freeport-McMoRan. Over the past month, five estimates have moved higher compared to one negative revision, helping the consensus estimate increase 6.18%.Favorable Zacks RankThanks to promising estimate revisions, Freeport-McMoRan currently carries a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.Bottom LineWhile strong estimate revisions for Freeport-McMoRan have attracted decent investments and pushed the stock 6.6% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Freeport-McMoRan Inc. (FCX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks