Why Freeport-McMoRan (FCX) is a Top Momentum Stock for the Long-Term

Zacks Investment Research highlights Freeport-McMoRan (FCX) as a compelling momentum stock, citing its 'A' Momentum Style Score and a 7.7% share price increase over the past four weeks. The consensus earnings estimate for fiscal year 2025 has risen by $0.03 to $1.65 per share, driven by upward revisions from four analysts in the last 60 days; FCX also holds a Zacks Rank of #3 (Hold) and a VGM Score of A, suggesting overall attractiveness.

Analysis

Freeport-McMoRan (FCX), a prominent player in mineral exploration and mining, currently holds a Zacks Rank #3 (Hold) but exhibits strong investment characteristics according to other Zacks metrics. The company has been assigned an 'A' for its VGM Score, indicating a favorable combination of value, growth, and momentum. Specifically, its Momentum Style Score is also 'A', supported by a 7.7% increase in its share price over the past four weeks. Reinforcing this positive momentum, four analysts have revised their earnings estimates upwards for FCX for fiscal year 2025 within the last 60 days. This has led to an increase in the Zacks Consensus Estimate for fiscal 2025 earnings by $0.03 to $1.65 per share. Furthermore, FCX has demonstrated a consistent ability to outperform expectations, boasting an average earnings surprise of 10.5%. These factors, particularly the strong momentum indicators and positive earnings estimate revisions, position FCX as a noteworthy stock within the Basic Materials sector, especially given its significant assets like the Grasberg mine, which holds the world's largest copper and gold reserves.

Key Decisions for Investors

• Investors, particularly those employing momentum-driven strategies, should consider FCX's 'A' Momentum Style Score, recent 7.7% share price appreciation, and positive revisions to fiscal 2025 earnings estimates as significant bullish signals.
• Despite its current Zacks Rank #3 (Hold), the combination of an 'A' VGM Score and strong momentum indicators suggests FCX warrants inclusion on a watchlist for potential investment, with continued monitoring of its fundamental and technical performance advised.
• Close attention should be paid to any future changes in FCX's Zacks Rank or further positive analyst estimate revisions, as these could serve as catalysts strengthening the investment thesis or indicating an optimal entry point.