Freeport-McMoRan Inc. (FCX), headquartered in Phoenix, Arizona, is a leading international metals company with the objective of being foremost in copper. With a market cap of $65.5 billion, the company mines mineral properties exploring copper, gold, molybdenum, silver, and other metals.
Shares of this leading international metals company have slightly outperformed the broader market over the past year. FCX has gained 31.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 31.1%. In 2024 alone, FCX’s stock rose 8.7%, compared to the SPX’s 19.8% rise on a YTD basis.
Zooming in further, FCX’s outperformance looks more pronounced compared to Ishares Copper And Metals Mining ETF (ICOP). The exchange-traded fund has gained about 30.8% over the past year. However, the ETF’s 15.7% gains on a YTD basis outshine the stock’s returns over the same time frame.
FCX's strong performance is driven by increasing demand from global trends like electrification and clean energy. Despite weaknesses in traditional sectors, growth in electrical infrastructure and AI data centers has boosted the company. Moreover, China's growing demand for copper, supported by government stimulus measures, has also lifted FCX's share price.
On Oct. 22, FCX shares closed up more than 1% after reporting its Q3 results. Its adjusted EPS of $0.38 did not meet Wall Street expectations of $0.40. The company’s revenue was $6.8 billion, exceeding Wall Street forecasts of $6.5 billion.
For the current fiscal year, ending in December, analysts expect FCX’s EPS to decline 1.3% to $1.52 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing the forecast on another occasion.
Among the 17 analysts covering FCX stock, the consensus is a “Moderate Buy.” That’s based on nine “Strong Buy” ratings, two “Moderate Buys,” and six “Holds.”
The configuration has been consistent over the past three months.
On Oct. 28, DBS analyst Eunyoung Lee maintained a “Buy” rating on FCX with a price target of $56, implying a potential upside of 21% from current levels.
The mean price target of $56.12 represents a 21.3% premium to FCX’s current price levels. The Street-high price target of $67 suggests an upside potential of 44.8%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
