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.
Wondering how to pick strong, market-beating stocks for your investment portfolio? Look no further than the Zacks Style Scores.
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.
The tariff uncertainties have triggered the higher copper stockpiling and spot prices, which consequently contributed to FCX's robust FQ2'25 numbers on a QoQ/ YoY basis. Even so, the management has unceremoniously lowered their FY2025 sales volume guidance, with the headwinds Grasberg ore grade revision negating the commodities' higher futures contracts. While FCX may tout a $1.7B benefit arising from the US copper premium, it remains to be seen how things may develop as Chile negotiate for tariff exemptions.
Wondering how to pick strong, market-beating stocks for your investment portfolio? Look no further than the Zacks Style Scores.
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.
Freeport-McMoRan is a compelling buy, due to strong copper demand, limited new supply, and a leading market position supporting a long-term bull thesis. Financial performance is robust, with rising margins, solid profitability, and shares trading at a discount to peers, despite superior scale and asset quality. My DCF and comparative analysis indicate a fair value of $50 per share, offering 11-12% upside, supported by conservative guidance and potential outperformance.