Why Freeport-McMoRan Will Bounce Back
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, global mining giant has earned a respected four-star ranking.
With that in mind, let's take a closer look at Freeport and see what CAPS investors are saying about the stock right now.
Freeport facts
Headquarters (founded) | Phoenix, Ariz. (1987) |
Market Cap | $28.0 billion |
Industry | Diversified metals and mining |
Trailing-12-Month Revenue | $18.0 billion |
Management | CEO Richard Adkerson CFO Kathleen Quirk |
30.1% | |
Cash/Debt | $9.6 billion/$10.1 billion |
Dividend Yield | 4.2% |
Competitors | BHP Billiton Newmont Mining Southern Copper |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 97% of the 5,998 members who have rated Freeport believe the stock will outperform the S&P 500 going forward.
Just last week, one of those Fools, timclaason, tapped Freeport as a particularly attractive long-term opportunity:
There's really no reason to believe FCX is going to have a price spike anytime soon. They're currently in a downward price trend, and most metal mining companies are in a similar trend.
I picked them to outperform because they look better on paper than many of their competitors -- net profit margin, PE/PEG, Price/Sales, and debt levels. I also expect the bottom to occur reasonably soon, since there's a limit to investors' bearishness with gold, silver, and copper.
I think that in the long term, FCX is a good buy in real life.
After putting together a blockbuster deal to expand into the oil and natural gas industry, Freeport-McMoRan will have plenty on its plate as it tries to adapt to the new industry, as expanding into oil and gas carries plenty of inherent volatility. FCX had a profitable copper business, and on top of this foray into a new industry it still has to contend with mining industry bellwether BHP Billiton. To help investors determine if Freeport-McMoRan is a buy or a sell, The Motley Fool has compiled a premium research report on the company. Simply click here now to access your copy today.
The article Why Freeport-McMoRan Will Bounce Back originally appeared on Fool.com.
Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool owns shares of Freeport-McMoRan Copper & Gold. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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