Freeport-McMoRan Inc. (FCX) is a prominent mining company in North America, South America, and Indonesia. With a market cap of $77.8 billion, the Phoenix-based company, incorporated in 1987, focuses on exploring and extracting copper, gold, and other minerals.
Shares of Freeport-McMoRan have outperformed the broader market considerably over the past year. FCX has gained 51.4% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 27.5%. In 2024, FCX stock is up 27.4%, surpassing SPX's 11.2% rise on a YTD basis.
Zooming in further, FCX's outperformance over the past 52 weeks also looks impressive in comparison to the US Basic Materials Ishares ETF's (IYM) 16.4% returns. Moreover, the stock's double-digit YTD gains outshine the exchange-traded fund's 6.4% returns over the same time frame.
FCX's impressive price performance is backed by solid financial results, driven by surging copper prices (HGM24), rising copper demand from China's economic rebound and green energy shift, strategic acquisitions, and cost-saving efforts.
For the current fiscal year, ending in December, analysts expect FCX's EPS to grow 7.8% year over year to $1.66. The company's earnings surprise history is robust. It beat the consensus estimate in each of the last four quarters.
Among the 15 analysts covering FCX stock, the consensus rating is a “Moderate Buy.” That’s based on eight “Strong Buy” ratings, one “Moderate Buy,” and six “Holds.”
This configuration is slightly more bullish than a month before, with seven analysts suggesting a “Strong Buy.”
On May 14, UBS raised Freeport-McMoRan's price target from $41 to $54, maintaining a "Neutral rating" on the stock. The upgrade reflects a copper market rally driven by supply concerns and expected industrial growth. UBS also increased earnings estimates, predicting robust EBITDA and significant free cash flow for Freeport-McMoRan in the coming years.
While FCX is currently trading at a premium to the mean price target of $52.20, the Street-high price target of $60 suggests a 10.6% upside potential.
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