Arizona-based Freeport-McMoRan Inc. (FCX) is a leading international mining company, involved in the mineral exploration and processing of copper (HGU24), gold (GCQ24), molybdenum, and silver (SIN24). Its operations are conducted through PT Freeport Indonesia, Freeport-McMoRan Corporation, and Atlantic Copper. The company's primary asset is the Grasberg mine in Papua, Indonesia, which has the world's largest copper and gold reserves. Freeport-McMoRan’s market cap currently stands at $68.5 billion.
Companies worth $10 billion or more are generally described as "large-cap stocks," and Freeport-McMoRan fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the mining industry. Its diverse mineral portfolio enables risk mitigation and stable revenue. Besides, the mining company's technological expertise in mining techniques, such as block caving and underground mining, improves operational efficiency, reduces costs, and maximizes resource recovery while minimizing environmental impacts.
Despite its commendable attributes, the mining company is down 10.6% from its 52-week high of $55.24, attained on May 20. However, shares of Freeport-McMoRan have gained 7.3% over the past three months, overshadowing the S&P 500 Index’s ($SPX) 4.8% returns during the same time frame.
Moreover, FCX stock has demonstrated impressive long-term performance, with 16% gains in 2024, surpassing SPX’s 14.8% returns over the same timeframe. Additionally, over the past 52 weeks, FCX has outperformed the index, with a 25.3% surge compared to SPX's 24.7% returns.
To confirm this bullish price performance, FCX has consistently traded above the 200-day and 100-day moving averages since early March.
Freeport-McMoRan has benefited from the copper market's remarkable upswing in 2024, which is also its primary revenue source. Moreover, despite sliding 2% on April 23, following the release of its Q1 earnings results, FCX stock rose for three consecutive trading sessions. Freeport-McMoRan's revenue of $6.3 billion, up 17.3% annually, exceeded estimates by 10.9%, while its EPS of $0.32 beat projections by 18.5%.
Freeport-McMoRan has also surpassed its competitor, Newmont Corporation (NEM). While NEM stock has risen 3.4% on a YTD basis, it has experienced a marginal decline over the past 52 weeks, significantly trailing FCX's double-digit gains.
Further, analysts are reasonably optimistic about FCX’s prospects. FCX stock has a consensus rating of “Moderate Buy” from the 15 analysts covering it, and the mean price target of $53.20 reflects an upswing potential of 7.8% from the prevailing market prices.
On the date of publication, Kritika Sarmah 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.
