Freeport-McMoRan Stock: Is FCX Underperforming the Basic Materials Sector?

Based in Phoenix, Arizona, Freeport-McMoRan Inc. (FCX), with a market cap of $58.84 billion, engages in the mining of mineral properties in North America, South America, and Indonesia. The company primarily explores copper, gold, molybdenum, silver, and other metals.

Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and FCX fits this criterion perfectly, exceeding the mark. As a key player in providing basic materials to different industries, FCX benefits from long-term stability and steady revenue growth. 

However, the mining giant has fallen 31.8% from its 52-week high of $55.24, which it hit on May 20. Shares of FCX have fallen 10.4% over the past three months, compared to iShares U.S. Basic Materials ETF’s (IYM) 4.4% fall over the same time frame.

Moreover, in the longer term, FCX shares have declined 5.8% over the past six months and 1.2% over the past 52 weeks. By contrast, IYM has fallen 1.1% over the past six months and 2.5% over the past 52 weeks.

Despite recent fluctuations, FCX has been trading below its 50-day moving average and 200-day moving average since mid-November 2024.

On March 5, FCX surged 9.3% as President Donald Trump suggested imports of copper could be subject to a 25% tariff. With domestic copper prices increasing by more than 5%, domestic mines could enjoy a more open market for their products.

In the basic materials industry, FCX’s rival, Southern Copper Corporation (SCCO), is in the lead, declining 3.5% over the past six months but rising 11.6% over the past 52 weeks.

Moreover, Wall Street analysts remain moderately bullish on FCX’s prospects. The stock holds a consensus “Moderate Buy” rating from the 18 analysts covering it. The mean target of $49.53 suggests a potential upside of 31.4% from the current market prices.