11 Best Materials Stocks to Buy According to Hedge Funds

2. Freeport-McMoRan Inc. (NYSE:FCX)

Number of Hedge Fund Holders: 88

Freeport-McMoRan Inc. (NYSE:FCX) is ranked second on our list of the best material stocks. It owns a stake in ten copper mines, including 49% of the Grasberg copper and gold operations in Indonesia, 55% of the Cerro Verde mine in Peru, and 72% of Morenci in Arizona. In 2024, it sold around 1.2 million metric tons of copper (its share), ranking among the biggest copper miners globally in terms of volume. Furthermore, it sold 70 million pounds of molybdenum and roughly 900,000 ounces of gold, primarily from Grasberg. The firm had around 25 years of copper reserves at the end of December 2024.

In 2024, Freeport-McMoRan Inc. (NYSE:FCX) improved its EBITDA by 14% to $10 billion. By increasing the leach opportunity, the company’s 2025 projection aims to achieve a run rate of 300 million pounds by the end of 2025. Furthermore, the business is moving forward with several organic growth initiatives that should increase the value of its stock in the years to come. The brownfield expansions in South America and the United States are included in this. These events have resulted in a favorable forecast for the business in 2025.

Morgan Stanley increased its target price for Freeport-McMoRan Inc. (NYSE:FCX) from $44 to $45 per share. Global GDP continues to slow, and recession fears will continue to pose challenges for mining companies, according to the analyst, who still prefers base metal equities over iron ore names in the firm’s Americas Metals and Mining coverage due to tighter supply outlooks.