FCX - Freeport-McMoRan Inc.
| Previous Close | 11.97 |
| Open | 11.87 |
| Bid | 11.68 x 38800 |
| Ask | 11.80 x 4000 |
| Day's Range | 11.65 - 11.91 |
| 52 Week Range | 8.43 - 14.68 |
| Volume | 29,554,005 |
| Avg. Volume | 21,870,480 |
| Market Cap | 17.179B |
| Beta (5Y Monthly) | 2.51 |
| PE Ratio (TTM) | 73.09 |
| EPS (TTM) | N/A |
| Earnings Date | N/A |
| Forward Dividend & Yield | 0.20 (1.62%) |
| Ex-Dividend Date | Jan 13, 2020 |
| 1y Target Est | N/A |
- InvestorPlace
Freeport McMoRan Is the Best Stock to Buy for 2020
The terms "artificial intelligence" and "copper miner" do not obviously relate to one another. But in the case of the company I'm about to tell you about, they do.Source: MICHAEL A JACKSON FILMS / Shutterstock.com And this connection is one of several reasons why this stock has become a compelling speculation -- and my pick for the top stock of 2020.One of the world's largest copper producers, this company has been testing an artificial intelligence, or "machine learning," model at its Bagdad copper mine in Arizona.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThis machine learning model uses data from sensors around the mine to "tailor" the ore processing method to each of the seven distinct types of ore that come from it.This test has been a remarkable success, so the company is now planning to roll out its new technology across all of its operations in the Americas.By doing so, this company expects to increase its annual copper production by a hefty 5%.And I expect that to produce triple-digit gains in 2020.Take a look … Boosting ProductionThe machine learning program is just one of three major initiatives Freeport McMoRan (NYSE:FCX) says will boost its copper production by 30% in 2020.The other two production drivers are: * A ramp up in Freeport's new underground mining operations at its massive Grasberg mine in Indonesia. * The company's new Lone Star copper development in Arizona is going into production.Combined, these three initiatives should produce a significant jump in earnings, even with no change in current copper or gold prices. At a minimum, the company should earn about 55 cents a share in 2020 and $1.40 in 2021. * 7 Healthcare Stocks With 100% Street Support Those results would give Freeport's stock a price-to-earnings ratio of 24 in 2020, which will then fall to just nine times earnings in 2021. Remember, though, these earnings estimates assume no change in copper prices during the next 12 months.But that's not what I'm assuming.I believe the price of copper is on the verge of a major upside move that will carry it above the five-year high of the $332 a pound mark it hit in late 2017.Source: InvestorPlace Five main factors will power this big move. Three of them are the "usual suspects," while two are unusual ones.First, the usual ones: * Copper supply is falling short of copper demand, which is creating a deficit in the market. * The copper deficit is likely to grow much larger over the coming decade. * The Federal Reserve has recently stated its intention to hold interest rates low throughout 2020, which should ignite commodity prices.In addition to these bullish forces, copper prices could gain a tailwind from two nontraditional factors: * Improving international trade relations, especially between the United States and China. * The global boom in electric vehicles and energy storage.Let's take a closer look at each of these five factors … Fueling Up for the Copper RallyFirst, Federal Reserve Chairman Jerome Powell has stated clearly that the Fed would refrain from raising short-term interest rates in 2020. Instead, he plans to hold rates below 1.75% throughout the year.I have no idea what the "appropriate" level of interest rates ought to be. But as recently as one year ago, the members of Powell's Federal Open Market Committee expected the appropriate level for short-term rates in 2020 to be 3.13%.Clearly, the Fed is pursuing an "easier" monetary policy than most investors had been expecting during the last several months. Generally speaking, "easy money" monetary policies tend to produce periods of rising commodity prices.Supply deficits are a second factor that could push copper prices higher. For most of the last few years, the global supply of refined copper has been falling slightly short of demand. But according to most forecasts for the copper industry, the current supply deficit will not merely persist during the next few years; it will grow much larger.Source: InvestorPlace Thanks to this supply deficit, coupled with the Fed's low interest rates, Freeport's earnings and cash-flow results are likely to surprise on the upside in 2020 -- especially as the copper price breaks out of its current basing formation around $2.60 a pound and challenges its 2017 highs closer to $3.50.Even a modest move to $3.25 a pound would produce a major lift to Freeport's results. The company's annual operating cash flow would swell by more than $1 billion -- from roughly $3 billion to $4 billion. Electric VehiclesBut remember, Freeport also produces nearly 1 million ounces of gold per year and 92 million pounds of molybdenum (a metal that's highly resistant to corrosion). So if either of those metals took a major swing to the upside, Freeport would benefit as well.That said, copper is the major driver of the company's profitability. So let's take a closer look at the two unusual "one-off" factors that could spur strong copper demand … and a rising copper price.First, the two-year trade war between the United States and China seems to be ending, with both nations signing a Phase 1 agreement last week. So, trade frictions between the world's two largest economies seem to be dissipating.As normalized trade resumes between the U.S. and China, economic growth could gain a tailwind that boosts demand for essential commodities like copper.Importantly, China is the world's largest importer of refined copper. So if the Chinese economy gains renewed vitality, the copper market will notice. And let's not forget that China is also the world's largest producer of electric vehicles, which are "copper hogs."Source: InvestorPlace Electric vehicles require about four times as much copper as internal combustion vehicles. Therefore, as EVs continue to gain market share, they will absorb a growing slice of the global copper supply. The Bottom Line on FCX StockI believe Freeport-McMoRan will produce triple-digit gains in 2020, both because its copper production will ramp up over the next several months and because copper prices will likely soar toward $3.50 a pound. * 10 Recession-Resistant Services Stocks to Buy I began researching my potential "stocks of the year" in early December and immediately saw the potential in Freeport. Clearly I was on the right track, because the stock has jumped as much as 20% since then. That's good news.The even better news is that I still expect much larger gains -- even triple-digit gains -- throughout 2020.Regards,Eric FryP.S. Folks spend their entire lives saving for retirement, but very few ever spend time thinking about how to protect their capital when things go south. Even a relatively minor decline of 20% could set your retirement back several years or more. That's why, for a limited time, I'd like to rush you a copy of my new book, Bear Market 2020: The Survival Blueprint.When it comes to the stock market, the biggest mistake most people are making right now is doing nothing. Don't wait for the news media to tell you the stock market has fallen by 20%. By then it will be too late. Learn how to claim your copy of Bear Market 2020 by clicking here.Eric Fry is an award-winning stock picker with numerous "10-bagger" calls -- in good markets AND bad. How? By finding potent global megatrends … before they take off. And when it comes to bear markets, you'll want to have his "blueprint" in hand before stocks go south. Eric does not own the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks on the Move Thanks to the Davos World Economic Forum * Invest in America's Most Trusted Brands With These 7 Stocks to Buy * 7 Earnings Reports to Watch Next Week The post Freeport McMoRan Is the Best Stock to Buy for 2020 appeared first on InvestorPlace.
- Thomson Reuters StreetEvents
Edited Transcript of FCX earnings conference call or presentation 23-Jan-20 3:00pm GMT
Q4 2019 Freeport-McMoRan Inc Earnings Call
- Zacks
Freeport's (FCX) Earnings and Sales Beat Estimates in Q4
Freeport's (FCX) average unit net cash costs per pound of copper was higher in Q4 on a year-over-year basis on lower production volumes at PT-FI.
- Reuters
US STOCKS-S&P 500 gains, Nasdaq hits new high as investors eye earnings, coronavirus
The S&P 500 ended slightly higher and the Nasdaq eked out a record closing high on Thursday, helped by a jump in Netflix, while news about the coronavirus outbreak spreading from China and mixed earnings results kept a lid on the market. The S&P and the Nasdaq had both been trading down before news late in the session that Gilead Sciences Inc was assessing its experimental Ebola drug as a possible treatment for the virus.
- GuruFocus.com
US Stocks Fall on Thursday
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ReutersUS STOCKS-Wall Street pares losses on positive coronavirus news
Wall Street struggled for direction on Thursday as investors digested mixed earnings and developing news about the coronavirus outbreak emanating from China. Health officials in China put millions of people on lockdown in efforts to contain a coronavirus outbreak that has so far claimed 18 lives, but the World Health Organization (WHO) announced it was "a bit too early" to declare the virus a global health emergency. Additionally, a spate of earnings reports, while beating Street estimates in many cases, have failed to impress investors.
- Zacks
Freeport's (FCX) Q4 Earnings & Sales Top Estimates
Freeport (FCX) reported adjusted earnings of 2 cents per share for Q4, which beat the Zacks Consensus Estimate of 1 cent.
- MarketWatch
Freeport-McMoRan tops earnings estimates for Q4
Freeport-McMoRan Inc. said Thursday it had net income of $9 million, or less than 1 cent a share, in the fourth quarter, down from $485 million, or 33 cents a share, in the year-earlier period. Adjusted per-share earnings came to 2 cents, ahead of the FactSet consensus for breakeven. The copper and gold miner said revenue rose to $3.911 billion from $3.684 billion, well ahead of the $3.698 billion FactSet consensus. Sales of copper totaled 906 million pounds, sales of gold came to 317 thousand ounces and sales of molybdenum came to 22 million pounds in the quarter. For 2020, the company is expecting sales of about 3.5 billion pounds of copper, 0.8 million ounces of gold and 88 million pounds of molybdenum, including 725 million pounds of copper, 105 thousand ounces of gold and 22 million pounds of molybdenum in the first quarter. Capital expenditures are expected to come to $2.8 billion in 2020 after $2.65 billion in 2019, and will fund underground development rose 0.5% premarket but are up just 0.1% in the last 12 months through Wednesday, while the S&P 500 has gained 26%.
- TheStreet.com
Freeport-McMoRan Beats Fourth-Quarter Estimates but Stock Trades Lower
Shares of Freeport McMoRan were lower after the copper- and gold-mining giant reported adjusted earnings and revenue numbers that beat expectations.
- Yahoo Finance
Procter & Gamble, Intel earnings: What to know in markets Thursday
Earnings season is in full swing and several heavyweights are gearing up to report results Thursday including consumer staples giant Procter & Gamble and chipmaker Intel.
- Bloomberg
Freeport Looks Poised to Turn Corner After Five-Year Bumpy Road
(Bloomberg) -- It’s been a rough haul for Freeport-McMoRan Inc., but the future may be looking up.In the past five years, the world’s largest publicly traded copper miner was forced to sell assets and shares to manage debt as it weathered fall-out from the collapse of the commodity super cycle. It emerged from multiyear talks over its Indonesian mine to secure long-term rights, and hung on as production at the flagship operation tumbled during the switch from open pit to underground mining.And in the past year, it has been buffeted by global trade winds and hit by crossfire from demonstrations against a competitor in Peru.When the Phoenix-based company releases fourth-quarter results on Thursday, the market will be more than ready for some good news.Morgan Stanley’s “bull case” for the stock predicts a 40% rally to $18 a share. While the ramp-up of underground mining at Grasberg, Freeport’s massive Indonesian copper-and-gold asset, remains challenging, the bank believes the miner “is well positioned to deliver on execution,” analyst Carlos De Alba said in a note this week.The trend to global electrification, fed by the need to provide lower-carbon power for transport and industry, is expected to increase demand for copper, potentially resulting in supply deficits. For those companies poised for production increases, the result will be long-term growth in free cash flow, even if other factors keep prices for the metal subdued, according to Jefferies LLC.Freeport expects to double cash flow, boost copper and gold production and cut costs 25% within two years, Chief Executive Officer Richard Adkerson said in an interview last month. The company also is boosting production with investment in its Lone Star project in Arizona.With copper futures at $2.77 a pound, Freeport -- as well as First Quantum Minerals Ltd. -- are likely to move from negative to double-digit yields over the next five years, Jefferies analyst Chris LaFemina said in note, with Freeport hitting 10% yields from 2022. Even in a bearish scenario in which copper falls to $2, cash flow should be positive for both miners, he said. The companies are Jefferies’ top mining picks.“Freeport could have a positive quarter, helped by sales deferred from Q3 and continued progress at Grasberg and Lone Star,” Sam Crittenden, an analyst with RBC Capital Markets, said in a note.\--With assistance from Aoyon Ashraf.To contact the reporter on this story: Danielle Bochove in Toronto at dbochove1@bloomberg.netTo contact the editors responsible for this story: Luzi Ann Javier at ljavier@bloomberg.net, Steven Frank, Joe RichterFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
- Zacks
Freeport (FCX) to Post Q4 Earnings: What's in the Cards?
Production and sales of Freeport's (FCX) Cerro Verde are likely to be higher in Q4 on a sequential basis.
- Zacks
Analysts Estimate Freeport-McMoRan (FCX) to Report a Decline in Earnings: What to Look Out for
Freeport-McMoRan (FCX) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
- Zacks
What's in the Offing for PPG Industries' (PPG) in Q4 Earnings?
Our proven model does not show that PPG Industries (PPG) is likely to beat the Zacks Consensus Estimate this quarter.
- Barrons.com
The Dow Is Up 80 Points Because There Is Little Holding It Back
The three major U.S. stock market indexes rose as investors looked ahead to Wednesday’s signing of the initial U.S.-China trade pact.
- Simply Wall St.
Are Investors Undervaluing Freeport-McMoRan Inc. (NYSE:FCX) By 26%?
How far off is Freeport-McMoRan Inc. (NYSE:FCX) from its intrinsic value? Using the most recent financial data, we'll...
- InvestorPlace
3 Stocks To Trade That Are Ready to Move in 2020
The 2019 scoreboard turned out great for equity bulls, but it was tumultuous for all markets. It's been a series of trading headline after headline -- making it difficult to have confidence on Wall Street. All sectors were affected, and toda,y we examine three such stocks to trade as we head into 2020.Freeport-McMoRan (NYSE:FCX), United States Steel Corporation (NYSE:X) and Nio Limited (NYSE:NIO) investors had to withstand big rallies and collapses throughout the year. Just recently, X fell off a cliff, Nio doubled in one day and FCX rallied 50% in a couple of months to salvage its year performance. * 7 'A'-Rated Stocks to Buy Under $10 With those types of performances, these clearly are stocks to trade into next year.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Stock Ready to Trade in 2020: Nio Limited (NIO) Click to Enlarge Source: Charts by TradingView Nio is a momentum stock like its competitor Tesla (NASDAQ:TSLA), meaning that it runs fast in both directions. Monday, it doubled on the positive reaction to its upside surprise in vehicle delivery report. While this sounds tremendous, the stock has fallen almost 90% since its highs in March; So, it's digging its way back out of an abyss.On the way down, it looked like it was headed to zero. So, this sudden upside burst is tempting to chase. But, before investors back up the truck and load up on Nio, they should consider that the giant rally sliced through all short-term levels too fast.The Monday high was exactly the ledge from which the stock collapsed in May. So, the first retest of it faces tremendous resistance. This is not the same as saying it will never happen -- but usually, the bulls need a few attempts before they retake prior accident scenes. $5 per share is in fact resistance until the buyers can prove they can retake it and use it for forward footing.Combine this enthusiasm with the recent adoration of Tesla stock, and you get a situation where sentiment has suddenly swung too far positive too fast. So, there will likely be better entry points into NIO stock than now -- especially if the goal is short-term profit.Nio now needs to hold $3.50 per share or else it risks filling the gap to $2.65. The problem with fast profits is that it creates a bunch of weak hands. Those make for shaky bases, so it needs a shake out of a few of them before the buyers can flex more muscle. This morning pop needs to hold so that the bulls have a chance at a new leg of the prior glory recovery. U.S. Steel (X) Click to Enlarge Source: Charts by TradingView In early December, U.S. Steel stock showed great technical promise. The chart was finally hinting at a big breakout, but then it all fell apart on a headline mid month when management hit the trifecta of bad news. They downgraded the outlook, cut the dividend and the buybacks. The investors panicked out of X stock in droves, and it is now 20% lower with almost no light at the end of the tunnel.However, this makes it so that there are few incremental sellers left. Everyone that wanted to sell did so already, so this leaves the upside potential in 2020 the more likely scenario. The Warren Buffet mentality applies here: Buy when everyone else is afraid. The trick is to make sure to set limits to potential losses because having solid stop loss levels makes for more successful trading. Otherwise, catching falling machetes like X stock would cause investors to lose many fingers. * 7 Stocks to Buy to Get 2020 Started the Right Way The U.S. Steel fans need to defend the recent lows, as it is imperative to stay double digits and not revisit the August lows. This will limit the damage done by the recent headline and the bulls can rebuild the upward momentum. The real battle would then be to breach through the $14 to $15 per share zone. The descending wedge still offers the best opportunity for X to recover by mid-2020. Freeport McMoRran (FCX) Click to Enlarge Source: Charts by TradingView Freeport-McMoRan stock is ending the year up as much as the S&P 500, but it wasn't all rosy. Most of the gains came from a late 50% rally off the October lows, and FCX stock is now trading inside a tight price range. This usually means that it will breakout soon from it, and the trade is to chase either side when it's breached.It is important to note that this is a trade more so than an investment. But, if the breakout happens to the upside, then FCX could use the momentum to take out the recent failure point near $15 per share and start another significant rally. So in a sense, this short-term trade could have long-term upside repercussions.This action in FCX is happening above a very long-term consolidation zone that dates back more than 15 years. Moreover, it bounced off the pivot levels from April of 2003. Back then, this served as a spring board to a 130% rally in a few months -- and then ultimately, ended up more that 500% at the highs of 2008.This alone doesn't mean that this rally here will have the same results, but it does suggest that FCX stock bulls have the benefit of strong support below. Responsibility is on the bears to find new reasons to go back to single digits.This also means that the bulls will have more than one attempt at breaching the resistance here and at $15 per share. Of course, for this to happen, management will have to avoid creating its own drama with balance sheet issues or strategic flubs.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. Join his live chat room for free here. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 'A'-Rated Stocks to Buy Under $10 * 7 High-Yield Dividend Stocks for Growth and Income in the 2020s * 7 Tech Stocks to Buy As the Trade War Ends The post 3 Stocks To Trade That Are Ready to Move in 2020 appeared first on InvestorPlace.
- Insider Monkey
How Did Freeport-McMoRan Inc. (FCX) Compare Against Top Hedge Fund Stocks in 2019?
We are still in an overall bull market and many stocks that smart money investors were piling into surged in 2019. Among them, Facebook and Microsoft ranked among the top 3 picks and these stocks gained 57% each. Hedge funds' top 3 stock picks returned 44.6% this year and beat the S&P 500 ETFs by […]
- InvestorPlace
Rising Copper Prices Will Drive FDX Stock Higher in the New Year
Freeport-McMoRan (NYSE:FCX) stock finally seems to be moving convincingly higher from range-bound trade. In the last two-and-half months, FCX stock has surged by 50%.Source: MICHAEL A JACKSON FILMS / Shutterstock.com Importantly, the rally has been supported by strong fundamental developments. Moving into 2020, I believe that FCX stock has more legs in the current rally.Since FCX stock has already moved higher by 50% in the last few months, I want to first discuss the valuation. Freeport-McMoRan currently trades at a 2020 EV/EBITDA of 6.81. This is still attractive considering the point that Southern Copper Corporation (NYSE:SCCO) trades at a 2020 EV/EBITDA of 9.96. FCX stock can cool-off after a massive rally, but the uptrend is likely to remain intact in 2020.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Copper Will Trend Higher in 2020The primary reason for FCX stock surging higher is the fact that copper has been trending higher. Last week, copper touched a seven-month high on the London Metal Exchange. There are reasons to believe that the uptrend for copper will sustain in 2020. * 7 Stocks to Buy to Get 2020 Started the Right Way With the United States and China reaching a phase one deal, easing trade tensions can boost global GDP growth. The International Monetary Fund also expects emerging markets to grow at 4.6% in 2020 from 3.9% in 2019. If growth in China and India accelerates, the demand for copper will ensure that the commodity continues to move higher. This will be positive for FCX as EBITDA margin will expand along with growth in free cash flows.Another reason to be bullish on copper is the fact that the Federal Reserve has been pursuing a renewed expansionary policy. The central bank's assets have swelled from $3.8 trillion in September to $4.1 trillion in December.With easy money in the financial markets, depressed asset classes are likely to move higher. In the last ten years, commodities have been the most depressed asset class and the next decade can be different. Lower investments in mining expansion due to depressed prices have narrowed the demand-supply gap. It is expected that copper market will go from surplus to deficit in 2021.Clearly, fundamental factors support the bull story for copper and as the commodity trend higher, FCX stock will follow. Financial Flexibility Will Support GrowthFor 2020, Freeport-McMoRan expects to incur capital expenditure of $2.6 billion. With cash of $2.2 billion and undrawn credit facility of $3.5 billion, FCX is fully funded for 2020 and 2021.FCX also generated an operating cash flow of $1.3 billion for the first nine months of 2019. This implies an annualized OCF of $1.7 billion. Therefore, with copper prices trending higher, FCX is well-positioned to reduce its net debt position in 2020.In the last 24 months, deleveraging has ensured that credit metrics improve for FCX. With prospects of higher commodity prices, FCX stock is positioned to debt re-rating. In addition, dividends can possibly increase towards the end of 2020 or into 2021.I want to add here that the sale of gold will also add to cash flow in addition to copper sales. Freeport-McMoRan expects gold sales to increase from 0.87 million ozs in 2019 to 1.45 million ozs in 2021.Gold is trading near $1,500 an ounce and I am positive on gold as expansionary policies are bullish for the precious metal. Therefore, over the next 24 months, gold is likely to support EBITDA margin expansion and cash flow upside. My Final Thoughts on FCX stockIf we go back by 24 months to 3Q17, FCX had $14.8 billion in total debt. In addition, the company had a relatively uncertain outlook due to negotiations with the government in Indonesia. Currently, total debt has declined to $9.9 billion and there is a firm agreement with the Indonesian government. In addition, the outlook for copper is bullish and gold has been trending higher.Clearly, FCX has made significant progress in terms of sale of non-core assets, deleveraging. The next two years will be focused on production ramp-up, which will translate into EBITDA and cash flow upside.This makes FCX stock worth considering even after the strong rally in the last few months. However, investors can wait for some profit booking before fresh exposure for 2020.As of this writing, Faisal Humayun did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Buy to Get 2020 Started the Right Way * 10 Best ETFs for 2020: The Competition Is Stacked Full of Potential * 4 Gold Stocks to Buy as the Yellow Metal Surges The post Rising Copper Prices Will Drive FDX Stock Higher in the New Year appeared first on InvestorPlace.
- InvestorPlace
3 Reasons Why Freeport-McMoRan Stock Is an Easy Buy
As the world increasingly becomes digitalized, I believe longer term that the case for commodities will only improve. Ironically, as technology advances, so will demand for the physical facilitation of those innovations. But over the past few years, this concept generally hasn't worked well for companies like Freeport-McMoRan (NYSE:FCX). During the trailing five-year period, FCX stock has dropped 44%.Source: MICHAEL A JACKSON FILMS / Shutterstock.com Why? Mostly, the commodities sector, particularly precious metals like gold and silver, peaked early this decade. Subsequent trades have attempted to push the physical assets market higher, only to be met with biting disappointment. Of course, that didn't suit Freeport-McMoRan stock well. The underlying company specializes in the industrial metals copper and molybdenum. It also has exposure to the gold market.Frankly, FCX stock was on track to be a disappointment this year as well. Up until late October, shares were down compared to January's opening price.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHowever, Freeport-McMoRan stock experienced a dramatic resurgence the day after Halloween. Since the unofficial holiday, shares have jumped 33%. * The 10 Worst Dividend Stocks of the Decade Naturally, with such a strong spike, investors question if enough momentum remains for 2020 and beyond. If that's you, all I can say is, oh yeah! FCX stock is primed to rock and roll. Here are three reasons why: The Federal Reserve's Dovish StanceAmong the many people not on President Donald Trump's Christmas card list is probably Federal Reserve Chair Jerome Powell. Routinely, Trump has bitterly complained that Powell refuses to aggressively cut benchmark interest rates. Just in that context, that might not appear beneficial for Freeport-McMoRan stock.But the reality is that the Fed has been more than accommodating for the administration and the broader economy. Powell has several times noted that he and his team of central bankers will monitor economic conditions and act accordingly.Irrespective of executive pressure, Powell is doing the right thing, applying a balanced, rational but nevertheless dovish strategy. And the best news of all came recently. According to the Washington Post, Powell sees no need to raise interest rates anytime soon.It's not what Trump wanted. However, it's good news for him, the economy and FCX stock. At the end of the day, the Fed is still accommodative. Naturally, this provides inflationary upside for commodities, something that Freeport-McMoRan hasn't seen for some time. Copper Prices Will (Finally) Support FCX StockAs I briefly mentioned up top, Freeport-McMoRan is a major player in the copper market. Barring extremely unusual circumstances, high copper prices (demand) is always good for FCX stock.If you need math to convince you, consider this: from January 1995 to through November 2019, the correlation coefficient between Freeport-McMoRan and the copper price per metric ton stands at a whopping 88%. In other words, as copper demand goes, so too does FCX. Click to Enlarge Source: Chart by Josh Enomoto And that's very good news for stakeholders and prospective buyers, according to Capital Economics' commodities expert Ross Strachan. He wrote:Constrained supply growth and surging demand from electric vehicles mean that we think that the price of copper will rise by over 60%, to nearly $10,000 per tonne, by 2025 … This rally is almost three times higher than consensus estimates.Perhaps surprisingly to many readers, "green" technologies use substantial amounts of copper. Strachan notes that this is especially the case for "electric vehicles, which use a lot more copper than cars with internal combustion engines."But copper has conductivity and other vital attributes that are critical for most industries. Furthermore, as developing nations transition to developed status, copper (and other metal) demand will surely increase.That's positive for copper prices and therefore Freeport-McMoRan stock. Golden Bonus for Freeport-McMoRan StockAlthough the industrial metals are where FCX stock makes its most money, Freeport-McMoRan is nevertheless an important gold player. While gold has been a temptress - skyrocketing in the summer but shedding momentum in the fall - I believe this market will also turn around.Again, consider the Fed's dovish policy. While it doesn't meet the aggression standards of Trump and his goldbug followers, it's still aggressive enough. Apparently, we are going to get our inflation: the bickering is over the magnitude.Beyond monetary policy, I think investors are anxiously eyeing both U.S. politics and geopolitics. Like gold, a meaningful resolution to the U.S.-China trade war has seductively eluded investors until just recently. But even then, things can go from great to terrible in a blink of an eye under this administration.If any fissures develop, gold is back on the upswing. And I believe that the uncertainties of the 2020 election will help boost the precious metal. Either way, I think you're looking at a positive, inflationary environment for Freeport-McMoRan stock.As of this writing, Josh Enomoto is long gold and silver bullion. He is also considering a long position in FCX stock in the next 72 hours. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 10 Worst Dividend Stocks of the Decade * 7 Game-Changing Tech Stocks to Buy Now * 5 Chinese Stocks to Buy for the Big 2020 Rebound The post 3 Reasons Why Freeport-McMoRan Stock Is an Easy Buy appeared first on InvestorPlace.
- Schaeffer's Investment Research
Call Traders Swarm Lululemon Stock This Holiday Season
Freeport-McMoRan stock is climbing its way toward annual high territory
- Barrons.com
Wall Street Is Finally Getting Bullish About Mining. Here Are 2 Stocks to Buy.
Wall Street is slowly getting more bullish on mining stocks. Large mining stocks Barron’s tracks are down more than 50% from all-time highs, but the sector has bounced back some in 2019, up about 14% on average. The reason for improved sentiment is linked to iron ore and copper, two key metals for global miners.
- Zacks
Copper at 4-1/2-Month High on Solid Imports Data From China
Copper prices surge amid positive data from China and the phase one trade deal between the United States and China.
