Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Freeport-McMoRan as such a stock due to the following factors:
- FCX has 16x the normal benchmarked social activity for this time of the day compared to its average of 8.42 mentions/day.
- FCX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $366.1 million.
Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.
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More details on FCX:
Freeport-McMoRan Inc., a natural resource company, is engaged in the acquisition of mineral assets, and oil and natural gas resources. The company primarily explores for copper, gold, molybdenum, cobalt, silver, and other metals, as well as oil and gas. The stock currently has a dividend yield of 4%. FCX has a PE ratio of 12.7. Currently there are 12 analysts that rate Freeport-McMoRan a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for Freeport-McMoRan has been 9.1 million shares per day over the past 30 days. Freeport-McMoRan has a market cap of $32.0 billion and is part of the basic materials sector and metals & mining industry. The stock has a beta of 2.07 and a short float of 2.1% with 1.69 days to cover. Shares are down 18.4% year-to-date as of the close of trading on Monday.
rates Freeport-McMoRan as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and generally higher debt management risk.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 0.7%. Since the same quarter one year prior, revenues rose by 28.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has increased to $1,386.00 million or 34.04% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -12.31%.
- 43.73% is the gross profit margin for FREEPORT-MCMORAN INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 8.72% trails the industry average.
- Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, FCX has underperformed the S&P 500 Index, declining 17.67% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- FREEPORT-MCMORAN INC's earnings per share declined by 6.1% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, FREEPORT-MCMORAN INC reported lower earnings of $2.64 versus $3.18 in the prior year. For the next year, the market is expecting a contraction of 7.8% in earnings ($2.44 versus $2.64).
- You can view the full Freeport-McMoRan Ratings Report.