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Freeport-McMoran Is Biggest Loser for Moving Averages, Returns

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Materials sector

As we’ve already seen, the materials sector was adversely impacted by the rout in commodity prices and the slowdown in demand for industrial metals. The sector was battered in 2015 due to the global economic slowdown.

The following table presents the closing prices of the materials sector stocks along with their respective moving average values.

Below are yields of the stocks in the above table as of December 28, 2015:

  • Newmont Mining (NEM): -3.4%
  • Freeport-McMoRan (FCX): -9.5%
  • Nucor (NUE): -1.1%
  • Vulcan Materials (VMC): -1.0%
  • Alcoa (AA): -1.4%
  • Martin Marietta Materials (MLM): -1.8%
  • Allegheny Technologies (ATI): -8.2%

Moving average analysis

When we look at the mining and construction stocks in the above table, all the stocks except Newmont Mining (NEM) have their respective beta values at more than 1. This implies that these stocks are sensitive to the broad market movement and are directly impacted by economic data.

Except for the construction and building material stocks—VMC and MLM—the trailing one-year yields for the above stocks were negative in 2015.

On December 28, only Alcoa (AA) managed to trade at a price above its 100-day, 50-day, and 20-day moving averages. This indicates that the stock could possibly move in an upward direction.

When compared to analysts’ stock price targets, these stocks on average possess an upward growth potential of 38%.

These stocks have an average of nine “buy,” seven “hold,” and one “sell” recommendations.

Freeport-McMoRan’s (FCX) trailing one-year return is the lowest at -70.7%. The stock had a steep fall on Monday, December 28, after the company’s announcement that its co-founder and executive member of the board stepped down as executive chairman. Both Moody and S&P (Standard & Poor’s) have maintained a “negative” outlook for the stock. S&P has rated FCX stock as BBB-.

Next, let’s look at the key stocks of the SPDR S&P 500 ETF (SPY) on December 28, 2015.

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