Freeport-McMoRan Inc. is one of the largest producers of copper and molybdenum globally. The company's mining operations include the exploration, development, mining, and processing of copper, gold, molybdenum, cobalt, and other metals.
Freeport-McMoRan operates several mines in the US, including the Morenci mine in Arizona, the Grasberg mine in Indonesia (which is one of the world's largest gold mines), and various other mining projects worldwide. Additionally, the company engages in oil and gas exploration and production through a subsidiary, although this division is relatively small compared to its mining operations.
Technically, the stock price is displaying a price symmetry pattern characterised by similar price patterns in a stock's price chart (see the notation on the chart). Symmetry indicates that historical price behaviour is repeating and may support the potential continuation of recent upward movement.
The stock is trading above its 200-day simple moving average (SMA) of ~$37.70. This usually indicates a bullish trend.
Our bullish bias is supported by strong upside momentum according to the Moving Average Convergence Divergence (MACD) indicator, as well as the upwards trajectory of the On-balance Volume (OBV) indicator.
Share Information
| Share code | FCX |
|---|---|
| Industry | Materials |
| Market Capital (USD) | 56.92 billion |
| One year total return | 53.71% |
| Return year-to-date | 5.21% |
| Current price (USD) | 39.71 |
| 52 week high (USD) | 46.73 |
| 52 week low (USD) | 24.80 |
| Financial year end | December |
| Closing paragraph | The share price has performed well over the last year and various technical indicators suggest further upside in the next few months. |
Consensus expectations
(Bloomberg)
| FY22 | FY23E | FY24E | FY25E | |
|---|---|---|---|---|
| Headline Earnings per Share (USD) | 2.44 | 1.72 | 2.14 | 2.64 |
| Growth (%) | -29.39 | 23.91 | 23.84 | |
| Dividend Per Share (USD) | 0.60 | 0.59 | 0.57 | 0.67 |
| Growth (%) | -2.17 | -3.75 | 18.76 | |
| Forward PE (times) | 23.05 | 18.60 | 15.02 | |
| Forward Dividend Yield (%) | 1.48 | 1.42 | 1.69 | |
| Closing paragraph | The market expects a slowdown in growth in FY23 due to soft commodity prices and cost pressures. However, a strong rebound is expected in the medium term driven by a growing demand for copper. | |||
Buy/Sell Rationale
Technical Analysis:
Long-term fundamental view:
| Share Name and position |
BKR - Take Profit (Close the position) |
VXF - Take Profit (Close the position) |
LIT - Buy (Continue to hold) |
|---|---|---|---|
| Entry | 30.17 | 139.26 | 62.48 |
| Current | 34.03 | 151.71 | 65.52 |
| Movement | 12.8% | 8.9% | 4.9% |
| Summary text | We closed the trade early to lock in profit and reduce portfolio risk. | We closed the trade early to lock in profit and reduce portfolio risk. |
Trading in a falling wedge pattern within a previous uptrend. The stock is above its 200-day simple moving average with continued upward momentum supporting the bullish bias.
Our profit target is $71 with a trailing stop-loss at $64.30. Exit the position on 30 August 2023. |
| Share Name and position |
AIG - Buy (Continue to hold) |
HACK - Buy (Continue to hold) |
HD - Buy (Continue to hold) |
|---|---|---|---|
| Entry | 54.72 | 47.58 | 301.09 |
| Current | 58.75 | 50.73 | 313.66 |
| Movement | 7.4% | 6.6% | 4.2% |
| Summary text |
The stock is displaying a broadening top pattern. The price is currently above its 200-day simple moving average. Upside momentum continues to support the bullish trend.
Our profit target is $62 with a trailing stop-loss of $55.50. Exit the position on 2 August 2023. |
The price remains above critical support levels and trade continues above the 200-day simple moving average. Upside momentum, however, has faded.
Our profit target is $55 with a trailing stop-loss of $48.80. Exit the position around 4 August 2023. |
The price pattern is currently indicative of an accumulation phase. Notably, the price is trending above its 200-day simple moving average. The presence of upward momentum reinforces the bullish trend direction.
Our profit target is $340 with a trailing stop-loss at $299. Exit the position on 15 September 2023. |
