Freeport Stock Buy Hold or Sell Recommendation

FCX
 Stock
  

USD 30.45  0.78  2.50%   

Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Freeport-Mcmoran is 'Hold'. Macroaxis provides Freeport Mcmoran buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding FCX positions. The advice algorithm takes into account all of Freeport Mcmoran's available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from Freeport Mcmoran's buy-and-hold perspective. Please check Freeport Mcmoran Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Freeport and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Freeport-Mcmoran.

Execute Freeport Mcmoran Buy or Sell Advice

The Freeport recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Freeport-Mcmoran. Macroaxis does not own or have any residual interests in Freeport-Mcmoran or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Freeport Mcmoran's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Freeport McmoranBuy Freeport Mcmoran
Hold

Volatility

Details

Hype Condition

Details

Current Valuation

Details

Odds of Distress

Details

Economic Sensitivity

Details

Analyst Consensus

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Financial Strenth (F Score)

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Financial Leverage

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Reporting Quality (M-Score)

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For the selected time horizon Freeport-Mcmoran has a Risk Adjusted Performance of (0.014205), Jensen Alpha of (0.05), Total Risk Alpha of (0.032697) and Treynor Ratio of (0.043102)
Our advice module can be used to complement Freeport Mcmoran investment recommendation provided by average analyst sentiment. It analyzes the company's potential to grow using fundamental, technical, data market data available at the time. To make sure Freeport Mcmoran is not overpriced, please confirm all Freeport-Mcmoran fundamentals, including its cash per share, beta, and the relationship between the revenue and cash flow from operations . Given that Freeport-Mcmoran has a price to earning of 11.97 X, we urge you to verify Freeport-Mcmoran market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Freeport Mcmoran Trading Alerts and Improvement Suggestions

Freeport-Mcmoran generated a negative expected return over the last 90 days
Freeport-Mcmoran has high historical volatility and very poor performance
Freeport-Mcmoran was previously known as FREEPORT-MCMORAN INC and was traded on New York Stock Exchange under the symbol FCX-A.
Over 80.0% of the company shares are owned by institutional investors
On 1st of August 2022 Freeport Mcmoran paid $ 0.15 per share dividend to its current shareholders
Latest headline from simplywall.st: Institutional owners may consider drastic measures as Freeport-McMoRan Inc.s recent US1.6b drop adds to long-term losses - Simply Wall St

Freeport Mcmoran current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Freeport analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Freeport analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price38.51
Target Median Price37.00
Target High Price55.00
Recommendation Mean2.30
Number Of Analyst Opinions21
Target Low Price24.00
Average Consensus Hold
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Freeport Mcmoran Returns Distribution Density

The distribution of Freeport Mcmoran's historical returns is an attempt to chart the uncertainty of Freeport Mcmoran's future price movements. The chart of the probability distribution of Freeport Mcmoran stock daily returns describes the distribution of returns around its average expected value. We use Freeport-Mcmoran price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Freeport Mcmoran returns is essential to provide solid investment advice for Freeport Mcmoran.
Mean Return-0.06Value At Risk-5.14
Potential Upside5.16Standard Deviation3.06
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Freeport Mcmoran historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Freeport Mcmoran Cash Flow Accounts

201720182019202020212022 (projected)
Capital Expenditure(1.16 B)(1.85 B)(1.96 B)(1.19 B)(1.78 B)(1.92 B)
Depreciation Amortization and Accretion1.71 B1.75 B1.41 B1.53 B2 B1.95 B
Net Cash Flow or Change in Cash and Cash Equivalents290 M(255 M)(2.18 B)1.62 B4.41 B4.76 B
Issuance Repayment of Debt Securities(2.86 B)(2.08 B)(1.32 B)(193 M)(260 M)(280.53 M)
Payment of Dividends and Other Cash Distributions(2 M)(218 M)(291 M)(73 M)(331 M)(357.13 M)
Net Cash Flow from Financing(3.06 B)900 M(1.56 B)(128 M)(1.34 B)(1.45 B)
Net Cash Flow from Investing(1.32 B)(5.02 B)(2.1 B)(1.26 B)(1.96 B)(2.12 B)
Net Cash Flow from Operations4.67 B3.86 B1.48 B3.02 B7.71 B8.32 B
Share Based Compensation71 M76 M63 M99 M98 M92.69 M

Freeport Mcmoran Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Freeport Mcmoran or Basic Materials sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Freeport Mcmoran's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Freeport stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
-0.05
β
Beta against DOW1.69
σ
Overall volatility
3.09
Ir
Information ratio -0.02

Freeport Mcmoran Volatility Alert

Freeport-Mcmoran exhibits very low volatility with skewness of 0.06 and kurtosis of 0.19. However, we advise investors to further study Freeport-Mcmoran technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Freeport Mcmoran's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Freeport Mcmoran's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Freeport Mcmoran Implied Volatility

Freeport Mcmoran's implied volatility exposes the market's sentiment of Freeport-Mcmoran stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Freeport Mcmoran's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Freeport Mcmoran stock will not fluctuate a lot when Freeport Mcmoran's options are near their expiration.

Freeport Mcmoran Fundamentals Vs Peers

Comparing Freeport Mcmoran's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Freeport Mcmoran's direct or indirect competition across all of the common fundamentals between Freeport Mcmoran and the related equities. This way, we can detect undervalued stocks with similar characteristics as Freeport Mcmoran or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Freeport Mcmoran's fundamental indicators could also be used in its relative valuation, which is a method of valuing Freeport Mcmoran by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Freeport Mcmoran to competition
FundamentalsFreeport McmoranPeer Average
Return On Equity26.78 %(0.31) %
Return On Asset12.00 %(0.14) %
Profit Margin20.08 %(1.27) %
Operating Margin47.30 %(5.51) %
Current Valuation56.73 B16.62 B
Shares Outstanding1.47 B571.82 M
Shares Owned by Insiders0.53 %10.09 %
Shares Owned by Institutions80.19 %39.21 %
Number of Shares Shorted30.93 M4.71 M
Price to Earning11.97 X28.72 X
Price to Book3.48 X9.51 X
Price to Sales1.91 X11.42 X
Revenue24.27 B9.43 B
Gross Profit10.81 B27.38 B
EBITDA11.48 B3.9 B
Net Income4.86 B570.98 M
Cash and Equivalents9.49 B2.7 B
Cash per Share6.51 X5.01 X
Total Debt11.09 B5.32 B
Debt to Equity0.46 %48.70 %
Current Ratio2.73 X2.16 X
Book Value Per Share9.10 X1.93 K
Cash Flow from Operations7.56 B971.22 M
Short Ratio1.21 X4.00 X
Earnings Per Share2.64 X3.12 X
Price to Earnings To Growth(0.37) X4.89 X
Number of Employees24.7 K18.84 K
Beta2.08-0.15
Market Capitalization46.43 B19.03 B
Total Asset4.19 B29.47 B
Retained Earnings(12.6 B)9.33 B
Working Capital100.11 M1.48 B
Current Asset637.98 M9.34 B
   Purchase by Sara Lewis of 3000 shares of Freeport Mcmoran [view details]

About Freeport Mcmoran Buy or Sell Advice

When is the right time to buy or sell Freeport-Mcmoran? Buying financial instruments such as Freeport Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2019 2021 2022 (projected)
Receivables1.17 B1.74 B1.93 B
Inventories4.07 B4.5 B4.18 B

Use Investing Ideas to Build Portfolios

In addition to having Freeport Mcmoran in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Sport Products Thematic Idea Now

Sport Products
Sport Products Theme
Companies manufacturing sporting goods and accessories. The Sport Products theme has 40 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Sport Products Theme or any other thematic opportunities.
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Please check Freeport Mcmoran Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Freeport-Mcmoran information on this page should be used as a complementary analysis to other Freeport Mcmoran's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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Is Freeport Mcmoran's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Freeport Mcmoran. If investors know Freeport will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Freeport Mcmoran listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Freeport-Mcmoran is measured differently than its book value, which is the value of Freeport that is recorded on the company's balance sheet. Investors also form their own opinion of Freeport Mcmoran's value that differs from its market value or its book value, called intrinsic value, which is Freeport Mcmoran's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Freeport Mcmoran's market value can be influenced by many factors that don't directly affect Freeport Mcmoran's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Freeport Mcmoran's value and its price as these two are different measures arrived at by different means. Investors typically determine Freeport Mcmoran value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Freeport Mcmoran's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.