From Nasdaq: 2024-11-16 08:04:00

Investing in basic materials stocks like Freeport-McMoRan Inc. (NYSE: FCX) involves looking into the future, especially with the demand for copper affecting the stock’s volatility. The company is a major player in sustainable copper mining, with plans to significantly increase copper production in the coming years.

Despite current pressures on copper prices, analysts predict a potential copper shortage by 2028, creating opportunities for miners like Freeport-McMoRan as manufacturers seek to secure their supply. Other factors like government policies, economic growth, and the performance of gold also contribute to the potential supply shortage.

FCX stock has shown strong growth in recent years, particularly from March 2020 to March 2021, with a total return of over 300%. While past performance is promising, factors like a low dividend yield and a high P/E ratio should be considered. Analysts have a Moderate Buy rating on the stock with a price target of $54, presenting a potential upside for investors.



Read more at Nasdaq: Freeport-McMoRan, Copper Demand Short-Term Pain, Long-Term Gain