With a market cap of $60.5 billion, Phoenix, Arizona-based Freeport-McMoRan Inc. (FCX) is a leading global mining company engaged in the exploration, mining, and development of mineral properties, focusing on copper, gold, molybdenum, silver, and other metals. The company operates through four main divisions: North America copper mines; South America mining; Indonesia mining; and molybdenum.
Companies valued at $10 billion or more are generally considered "large-cap" stocks and Freeport-McMoRan fits this criterion perfectly. Its primary operations span North America, South America, and Indonesia, with major assets such as the Grasberg mine in Indonesia, which holds the world’s largest copper and gold reserves.
However, the mining company has slipped 23.8% from its 52-week high of $55.24, achieved in May. Shares of Freeport-McMoRan have increased 5.2% over the past three months, lagging behind the broader Dow Jones Industrials Average's ($DOWI) 10.7% rise over the same time frame.
Longer term, FCX is down 1.2% on a YTD basis, underperforming DOWI's 18.5% gain. Moreover, shares of Freeport-McMoRan have risen 16.1% over the past 52 weeks, compared to Dow Jones' 23.8% return over the same time frame.
FCX has shown a bearish trend, trading below its 50-day and 200-day moving averages since early November.
Despite reporting weaker-than-expected Q3 adjusted EPS of $0.38, shares of Freeport-McMoRan recovered 1.2% on Oct. 22 as the company posted revenue of $6.8 billion exceeding the consensus forecasts, driven by higher copper and gold prices. The company's copper production and sales also exceeded expectations, contributing to a positive market reaction. Additionally, FCX's strong cash flow performance, up 51% year-over-year, and its optimistic 2024 guidance on sales volumes and operating cash flows helped offset concerns over the earnings miss.
Nevertheless, in contrast, its rival, Southern Copper Corporation (SCCO), has seen a notable rise, with a 16.2% YTD gain and a 40.3% increase over the past year, outperforming FCX.
Despite FCX's underperformance over the past year, analysts are moderately optimistic about its prospects. The stock has a consensus “Moderate Buy” rating overall from the 17 analysts covering the stock. Also, as of writing, it is trading below the mean price target of $55.41.
