uploads///wire _

Is Freeport-McMoRan Worth a Look Now?

By

Dec. 19 2018, Updated 11:56 a.m. ET

Freeport-McMoRan

Freeport-McMoRan (FCX), the leading US-based copper miner, has been struggling in 2018. The stock has fallen 44% year-to-date based on its closing prices on December 18. Other copper miners have followed copper lower. Diversified miners including BHP Billiton (BHP), Rio Tinto (RIO), and Vale (VALE) have also come under pressure. There have been more concerns about the Chinese economy.

Article continues below advertisement

China factor

Some of the recent data points from China including car sales, retail sales, and industrial production have shown growth moderation. Car sales have fallen by double digits for three consecutive months. China’s November trade war was also weaker than expected. The country’s export and import growth rates fell to multi-month lows. While a weaker domestic economy led to lower imports, front-loading of exports was blamed for China’s lower exports.

However, China’s copper imports were strong in November. Although China’s imports have fallen on a yearly basis, the fall came from a relatively higher base. Read Chinese Copper Imports Fell: Not a Reason to Panic Yet to find out what China’s November copper imports signify for copper miners.

Coming back to Freeport-McMoRan, are we done with the sell-off or is there more pain ahead for the stock? In this series, we’ll discuss Freeport-McMoRan’s outlook. First, we’ll discuss the biggest risk facing metal and mining companies (DIA).

Advertisement

More From Market Realist

  • MP Materials mine
    Basic Materials
    MP Materials (MP) Is an Attractive Play on Rare Earths
  • Woman looking at data
    Basic Materials
    Should You Buy SLV Stock Before Another Silver Short Squeeze?
  • Freeport-McMoRan employee at a facility
    Basic Materials
    FCX Stock Is a Good Buy for Investors as Copper Prices Top $10,000
  • Alcoa logo
    Basic Materials
    Alcoa (AA) or CENX: Picking the Best Aluminum Stock
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.