Freeport-McMoRan’s Stock Performance: A Closer Look at Recent Trends
Company Spotlight: Freeport-McMoRan Inc. (FCX) is a major player in the international metals market, primarily focused on copper production. Based in Phoenix, Arizona, the company has a market capitalization of $65.5 billion and operates in mining various mineral properties, including gold, molybdenum, silver, and other metals.
Performance Overview: Over the past year, FCX’s shares have slightly outperformed the overall market. The stock rose 31.6%, while the S&P 500 Index ($SPX) gained nearly 31.1%. In 2024 alone, FCX’s stock has increased by 8.7%, compared to the SPX’s 19.8% rise year-to-date.
When comparing FCX’s performance to the Ishares Copper And Metals Mining ETF (ICOP), the difference is notable. While FCX is up 31.6% year-over-year, ICOP has seen a gain of approximately 30.8%. However, ICOP outperformed FCX with a 15.7% rise year-to-date versus FCX’s more modest gains.
Market Drivers: FCX’s strong stock performance can be attributed to rising global demand, particularly from the electrification trend and clean energy initiatives. As traditional sectors show weakness, growth in electrical infrastructure and AI data centers has supported FCX. Moreover, demand for copper in China, bolstered by government stimulus programs, has positively influenced FCX’s share price.
On October 22, FCX shares increased by over 1% following the release of its Q3 earnings. The company’s adjusted earnings per share (EPS) were $0.38, which fell short of Wall Street’s expectations of $0.40. However, FCX reported revenue of $6.8 billion, exceeding the forecast of $6.5 billion.
Looking ahead to the current fiscal year ending in December, analysts anticipate a slight decline in FCX’s EPS by 1.3%, bringing it to $1.52 on a diluted basis. Historically, the company has shown mixed results in meeting earnings expectations, surpassing consensus estimates in three out of the last four quarters.
Analyst Consensus: Among the 17 analysts who cover FCX, the general consensus remains a “Moderate Buy.” This assessment includes nine “Strong Buy” ratings, two “Moderate Buys,” and six “Holds.”
In a recent update on October 28, DBS analyst Eunyoung Lee reaffirmed a “Buy” rating for FCX with a price target of $56, indicating a potential increase of 21% from current prices. The average price target is set at $56.12, suggesting a 21.3% premium over FCX’s present valuation, while the highest target of $67 insinuates a possible upside of 44.8%.
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On the date of publication, Neha Panjwani did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. Please view the Barchart Disclosure Policy for more details.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Nasdaq, Inc.
