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The shares of Freeport-McMoran, Inc. (NYSE: FCX) and Verizon Communications Inc. (NYSE: VZ) were among the active shares of the last trading days. Freeport-McMoran, Inc. (NYSE: FCX) closed at -0.52% at a price of $ 17.07 while shares of Verizon Communications Inc. (NYSE: VZ) climbed 0.56% with the increase of 0.2800 billion to 000000 points at the price of $ 50.7. Freeport-McMoran, Inc. has currently decreased -13.66% of its shares over the 6-month period while its rival Verizon Communications Inc. has -5.29% off in the previous 6 months.
Now, We Must Analyze the Facts The facts to be analyzed here are the risks, profitability, returns, and price trends
Returns and Profitability
Profitability and Returns are The main reason for investing, investors are looking for the profits that they get and the returns that they should expect over the period of time.
The first and most important return that is considered while making an investment is the return on investment or return on investment. ROI is the ratio between profit and the cost of investing. Currently, the ROI of Freeport-McMoran, Inc. (NYSE: FCX) is 11.3% while the return on investment of Verizon Communications Inc. (NYSE: VZ) is 11.6%. The EBITDA margin of FCX is 5.43 while that of VZ is 6.8
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EPS and outperformance factor
Freeport-McMoran, Inc. (NYSE: FCX) reported earnings per share of $ 0.46 / share for the prior quarter, which analysts predicted EPS at $ 0.56 / share Exceeding analyst estimates with a surprise factor of -17.9%. At the same time, Verizon Communications Inc. (NYSE: VZ) reported earnings per share of $ 1.17 / share in the last quarter. Analysts calculated EPS of $ 1.1 / share representing a surprise of 6.4%.
Looking at earnings per share, Verizon Communications Inc. tends to outperform analysts' estimates more than Freeport-McMoran, Inc. VZ is more profitable than FCX.
Technical Analysis of Freeport-McMoran, Inc. and Verizon Communications Inc.
The Moving Average Convergence Divergence (MACD) shows that Freeport-McMoran, Inc. (NYSE: FCX) is on PRICE RELATIVITY TRENDS While Verizon Communications Inc. (NYSE: VZ) is on the PRICE RELATIVITY PRICE. The trend of the past 10 days shows that Freeport-McMoran, Inc. was in BULLISH territory and Verizon Communications Inc. was in BULLISH territory.
Current FCX statistics estimate that the stock market candle is BEARISH with high volatility. While VZ Candle is BULLE with MEDIUM
EPS Growth Rate: 23.61% FCX vs. 5.5% VZ
Another shareholder value may be analyzed by the growth rate of EPS; The growth rate of BPA for the next 5 years is predicted by analysts after analysis of previous trends. Freeport-McMoran, Inc.'s (NYSE: FCX) 5-year EPS growth rate is forecast at 23.61%, while Verizon Communications Inc. (NYSE: VZ) is at 5.5%. These figures suggest that FCX is a more appropriate investment in terms of EPS growth rate.
Financial Risks and Liquidity Problems
The current ratio and the debt ratio are the two ratios that show the investor the company is able to repay its debt and how fast it can cover its obligations. The current ratio of FCX stands at 2.3 while VZ is at 1 while the debt ratio of the previous is 1.34 while the debt ratio of the latter is of 2.34.
The values of the two ratios suggest that one is more liquid
Recommendations of Analysts
While making an investment, another important factor to consider before Invest is the analyst's recommendation on the scale of 1 to 5 where 1 is strong, 2 is buy, 3 is on hold, 4 is sell and 5 is strong selling. The analyst recommends 2.8 for FCX and 2.5 for VZ, which means that FCX has a Hold rating while VZ has a Hold rating.
Another recommendation of the analyst that should be considered worthy is the price target. The price of the mare or the price trend do not suggest the relevance of a stock. The price target set by the analyst should also be considered while investing as it suggests how far the action will increase or decrease in the near future. The target price set for FCX is $ 20.52, or 16.81% of its current price, while VZ has a price target of 55.88, or 9.27% of its current price.
Valuation Ratios
To determine the value of the business for an investor, the valuation ratios give an overview of this value.
FCX currently has a price / earnings ratio of 13.28 while VZ has 14.51 while the price / earnings ratio before 14.86 and for the last it represents the value of 10.8
The price at Book P / B for FCX is 2.86, the selling price is at 1.38 and for VZ these ratios are at 4.1 and 1.6.
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