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

Freeport-McMoRan (FCX) is highlighted by Zacks as a top momentum stock, despite its Zacks Rank #3 (Hold), due to its strong A-rated VGM and Momentum Style Scores. The copper and gold miner has experienced a 10.4% share price increase over the past four weeks, supported by six analysts raising their fiscal 2025 earnings estimates, which boosted the Zacks Consensus Estimate by $0.09 to $1.76 per share. This positive sentiment is further reinforced by FCX's average earnings surprise of 10.5%, positioning it as a notable consideration for investors' short lists, particularly those focused on momentum strategies.

Analysis

Freeport-McMoRan (FCX) presents a compelling case for momentum-focused investors, despite its neutral Zacks #3 'Hold' rating. The company's stock exhibits strong positive technical and sentiment signals, underscored by a top-tier 'A' rating for both its Momentum Style Score and its combined VGM (Value, Growth, Momentum) score. This is supported by tangible performance, with shares appreciating 10.4% over the past four weeks. The primary driver for this momentum appears to be a positive shift in its earnings outlook for fiscal 2025. Specifically, six analysts have revised their earnings estimates upward over the last 60 days, leading to a $0.09 increase in the Zacks Consensus Estimate to $1.76 per share. Furthermore, the company's historical performance, demonstrated by an average earnings surprise of +10.5%, suggests a consistent ability to exceed market expectations. These factors indicate that improving earnings forecasts are currently outweighing the neutral fundamental rating, positioning FCX as a noteworthy name in the basic materials sector.

Key Decisions for Investors

• Given the 'A' grade for momentum and the 10.4% price increase over the last month, investors with a momentum strategy should consider FCX a high-priority candidate for their watchlist.
• Investors should weigh the strong quantitative momentum signals against the neutral Zacks #3 'Hold' rating, which may suggest that other fundamental factors could be restraining a full 'Buy' recommendation.
• The core driver is the upward trend in earnings estimates, therefore, it is critical to monitor future analyst revisions for fiscal 2025, as any slowdown or reversal in this trend could signal a weakening of the stock's momentum.