Why Freeport-McMoRan Copper & Gold Slipped
While Fools should generally take the opinion of Wall Street with a grain of salt, it's not a bad idea to take a look at particularly stock-shaking analyst upgrades and downgrades -- just in case their reasoning behind the call makes sense.
What: Shares of Freeport-McMoRan Copper & Gold slipped 2% this morning after Goldman Sachs downgraded the mining giant from buy to neutral.
So what: Along with the downgrade, analyst Sal Tharani planted a price target of $37 (from $36) on the stock, representing about 3% worth of upside to yesterday's close. While contrarians might be attracted to Freeport's share-price surge since late June, Tharani believes the company's near-term prospects are now baked into the valuation.
Now what: Goldman thinks Freeport's risk/reward trade-off is pretty balanced at this point. "We downgrade FCX to Neutral from Buy, as the stock trades near our price target and we do not see any near-term catalysts to drive the stock," Goldman noted. "While we remain positive on its long-term outlook on the back of its organic growth projects in copper and oil, we view these benefits as priced in." With the stock still trading at a clear price-to-cash flow discount to the industry and boasting a 3.5% dividend yield, however, those short-term concerns might provide patient Fools with a juicy long-term income opportunity.
More dynamic dividend picks
Dividend stocks can make you rich. It's as simple as that. While they don't garner the notoriety of high-flying growth stocks, they're also less likely to crash and burn. And over the long term, the compounding effect of the quarterly payouts, as well as their growth, adds up faster than most investors imagine. With this in mind, our analysts sat down to identify the absolute best of the best when it comes to rock-solid dividend stocks, drawing up a list in this free report of nine that fit the bill. To discover the identities of these companies before the rest of the market catches on, you can download this valuable free report by simply clicking here now.
The article Why Freeport-McMoRan Copper & Gold Slipped 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.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.
