10 Best Materials Stocks to Buy Right Now

7) Freeport-McMoRan Inc. (NYSE:FCX)

Average Upside Potential: 32.5%

Freeport-McMoRan Inc. (NYSE:FCX) is engaged in the mining of mineral properties in North America, South America, and Indonesia.

Freeport-McMoRan Inc. (NYSE:FCX)’s Grasberg mine in Indonesia is renowned for its substantial copper and gold reserves. Market experts believe that the potential 20-year extension of operations at the Grasberg mine reflects a healthy opportunity for Freeport-McMoRan Inc. (NYSE:FCX). Grasberg has been tagged as one of the world’s largest copper and gold mines. This means that securing its long-term future should result in a stable production base and cash flow stream for the company.

Freeport-McMoRan Inc. (NYSE:FCX)’s position in the copper market remains a key differentiator. Wall Street experts believe that this should benefit the company from a positive supply/demand/pricing outlook for copper, fueled by global trends inclined towards decarbonization and electrification. These macro trends should sustain healthy demand for copper over the upcoming years, potentially aiding increased prices and benefiting major producers like Freeport-McMoRan Inc. (NYSE:FCX).

Furthermore, the company’s competitive advantage is strengthened by reserves and strategic assets. Freeport-McMoRan Inc. (NYSE:FCX)’s El Abra copper project in Chile reflects a significant growth opportunity. Also, the global shift towards renewable energy and EVs should fuel increased demand for copper, potentially aiding Freeport-McMoRan Inc. (NYSE:FCX)’s market position and profitability over the coming years.

Analysts at JPMorgan Chase & Co. upped their target price on the shares of Freeport-McMoRan Inc. (NYSE:FCX) from $53.00 to $55.00, giving a “Neutral” rating on 15th October.