FCX Should I Buy
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Freeport-McMoRan Inc (FCX) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The stock benefits from strong long-term demand for copper, positive analyst sentiment, and government initiatives supporting critical minerals. While there are some short-term technical weaknesses and insider selling, the long-term growth potential outweighs these concerns.
The stock shows mixed technical signals. The MACD is bearish with a negatively expanding histogram, and RSI is neutral at 48.543. However, moving averages are bullish (SMA_5 > SMA_20 > SMA_200), indicating an upward trend in the longer term. Key support is at 59.169, and resistance is at 65.09.
Analysts have raised price targets significantly, with most targeting $68-$70, reflecting optimism about copper demand and the company's performance.
Government initiatives like Project Vault and increased investments in critical minerals signal strong support for the sector.
Long-term copper demand is projected to rise by 50% by 2040, creating a favorable macroeconomic environment for Freeport-McMoRan.
Insiders are selling heavily, with an 8721.36% increase in selling activity over the last month.
The stock experienced a -5.22% regular market decline recently, and the MACD indicates short-term bearish momentum.
Gross margin dropped significantly by -27.54% YoY in Q4 2025, raising concerns about operational efficiency.
In Q4 2025, revenue dropped slightly by -1.52% YoY to $5.63 billion, but net income surged by 48.18% YoY to $406 million. EPS also increased by 47.37% YoY to $0.28, showcasing strong profitability improvements despite a decline in gross margin to 18.05%.
Analysts are overwhelmingly positive, with multiple firms raising price targets to $68-$70 and maintaining Buy or Overweight ratings. Only one firm, Bernstein, downgraded the stock to Market Perform, citing concerns about valuation and copper price assumptions.
