SerpApi.Org
Freeport-McMoRan (FCX) is scheduled to report its Q2 earnings on Thursday, July 23, before the market opens. Wall Street expects a consensus EPS of $0.62 (+14.8% Y/Y) on revenue of $6.75B (-10.9% Y/Y).
Freeport-McMoRan has outperformed the market by double double-digits since early this year, as copper has been caught up as a beneficiary of the AI boom. Copper prices have moved to more than $6 per pound, as infrastructure continues to be ramped. Yet, Freeport-McMoRan remains overvalued, Investing Group Leader The Value Portfolio said.
Freeport, one of the largest copper producers in the world, with a market capitalization of more than $89 billion, has a number of major investment initiatives.
"Despite all that, we still feel the company's price is lofty. Copper prices are at all-time highs, and even with that, the company will barely hit a double-digit FCF yield for 2027 and 2028, but not 2026," the analyst said.
According to another analyst, FCX is one of the best ways to play the ebbs and flows in copper pricing. "While the company has experienced short-term production setbacks, it remains a highly advantaged producer in the space with some of the best assets."
"I see downside risk for shares should copper prices start to come in. Without an obvious catalyst for that today, I am Hold rated, especially ahead of what should be a strong Q2 set of results," Passage Research said in a note.
Over the last 2 years, FCX has beaten EPS estimates 100% of the time and has beaten revenue estimates 88% of the time.
Barclays earlier this year said it is constructive on copper, expecting demand to outpace supply through the end of the decade, driven by growth across new end markets such as grid, renewables, and electric vehicles, as well as ongoing capex for AI infrastructure demand; Freeport-McMoRan (FCX) is the preferred name in the sector.
Over the last 3 months, EPS estimates have seen 5 upward revisions and 4 downward. Revenue estimates have seen 5 upward revisions and 3 downward.
