Freeport-McMoran Inc. NYSE: FCX Promotions of shares decreased by almost 4% (3.96%) after the company issued its profit for the fourth quarter and for 2024 in 2024. Field
One of the reasons for the promotion slide is that the mining company published a reduction in income compared to the same period last year. 5.72 billion dollars. The United States, a created company, has decreased compared to $ 5.9 billion. The USA that he generated in the same quarter in 2023. GAAP income also lost to analysts and were lower.
However, as a result of something like income and volume of income and production volumes that do not have income. 2025.
FCX shares advanced up and down with the price of copper. In fact, the similarity between the two charts is terrible. The long -term prospects for demand for copper remain strong. But does this mean that this is the time to buy FCX shares?
Uncertainty leads to short -term moods
Investors have heard enough about tariffs over the past few months to extend life. And now, when President Trump is in the White House, the administration tariff plans begin to take shape.
As part of the initial wave of executive orders of President Trump, the administration plans to introduce 25% of copper tariffs on Canadian and Mexican copper, starting on February 1. Although Freeport-McMoran does not have mining in these countries, this may affect if Canada can affect Canada. And Mexico introduced return tariffs for imported copper.
Another problem is a potential slowdown in the Chinese economy. The increase in the media question due to an increase in measures to stimulate the government in this quarter raised the unsurpassed income of Freeport during the quarter. Nevertheless, there are fears that the Chinese economy is slowing down, which would be bear for copper.
The company is also involved in a dispute with the Indonesia Government regarding its ability to export a copper concentrate. The validity of the Freeport license has expired in December, and some analysts express concern about the company’s ability to get extension. The delay will lead to a reduction in production and sales in the current quarter.
As if this was not enough, investors also need to consider the growth of the US dollar. The spare price of goods, such as gold and copper, has feedback with the dollar, therefore, when it grows, the point price of metals is reduced.
There is something else that will like in the foundations of a freort.
Despite the top line, Freeport-McMoran noted that sales of copper and gold received above the company’s management in October 2024. Pure expenses per unit of money were also lower than the October leadership.
It is also important to remember that before the report of the FCX campaign, they increased by 5.7% in the first two weeks of the new year. The enthusiasm for the company’s shares is associated with the expected demand for copper. Freeport-McMoran is one of the leading copper miners and offers investors a stable balance and a lot of production.
Let the copper be your guide with the FCX action
Investors have a rather high wall of anxiety before they want to invest in FCX shares. Nevertheless, all problems are short -term and do not affect the long -term prospects of copper, which will be important for satisfying the growing demand for new energy and energy applications.
Freeport-McMoran has a solid foundation. In the fourth quarter, the company announced the volume of copper and gold for the whole year, which exceeded sales, and increased its production prospects for both copper and gold.
A Analysts are predicted on Market cube have a consensus target price in the amount of $ 52.42, which is 32% more than the price of a share after a fall in the profit. This price is supported by the expected increase in profit per share by 27.9% in the next 12 months.
Nevertheless, for those who bring value to the price number before profit, you will pay a bonus for FCX shares, which are traded about 25 times. The average sector for Basic materials reserves About 19 -fold earnings.
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