A curious divergence is capturing the attention of investors in the basic materials sector. On the one hand, the copper market is sending powerful signals, with prices supported by forecasts of massive and sustained demand.
Freeport-McMoRan Inc (NYSE:FCX) stock is up 1.2% to trade at $39.33 at last glance, after the gold and copper miner received an upgrade from UBS to "buy" from "neutral.
Zacks.com users have recently been watching Freeport-McMoRan (FCX) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
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Freeport-McMoRan (NYSE:FCX) has increased by 19% year-to-date, but the stock is increasingly perceived as Unattractive due to its moderate operational performance and financial condition. While there is strength in copper prices and improving demand influenced by electrification and renewable energy trends, the company's operational leverage leaves it highly vulnerable to commodity fluctuations, and even slight declines in copper prices could significantly impact earnings.
Freeport-McMoRan is the premier U.S. copper producer, trading at a significant discount to peers and supported by bullish technical indicators. Copper's long-term demand is driven by electrification, clean energy, and AI, while supply remains constrained, setting up a multi-year bull market. Freeport's robust project pipeline, innovative leach technologies, and management share buybacks reinforce my conviction in its long-term value.
Freeport-McMoRan climbs 11% in six months, but weaker expected copper sales and higher costs cloud its growth outlook.
Freeport-McMoRan cut copper costs sharply in Q2, but projects sequentially higher expenses ahead in Q3.
Zacks.com users have recently been watching Freeport-McMoRan (FCX) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
FCX posts strong Q2 volume gains in copper and gold, but a subdued Q3 outlook hints at hurdles for sustained momentum.
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Key Points in This Article: President Trump's decision to limit copper tariffs to semi-finished products caused a sharp price drop, impacting U.S.