12 Best Basic Materials Stocks to Buy According to Analysts

3) Freeport-McMoRan Inc. (NYSE:FCX)

Average Upside Potential: 46.5%

Number of Hedge Fund Holders: 74

Freeport-McMoRan Inc. (NYSE:FCX) is engaged in the mining of mineral properties. Carlos De Alba, an analyst from Morgan Stanley, maintained a “Buy” rating on the company’s stock, maintaining the price target of $55.00. The rating stems from several factors surrounding the company’s recent performance and future potential. Despite mixed Q4 2024 results, the analyst believes that Freeport-McMoRan Inc. (NYSE:FCX) has demonstrated its ability to manage costs and capitalize on positive market conditions.  Amidst concerns relating to increased costs and lower copper sales in the near term, the company’s initiatives and planned capital expenditures, such as investments in smelting operations in Indonesia, place it well for long-term growth and profitability, says the analyst.

The analyst also opines that Freeport-McMoRan Inc. (NYSE:FCX) is well-placed to benefit from favorable trends in copper and gold prices. The optimism around the company’s stock is affected by its strategic positioning in the market. Notably, the scarcity of pure copper investment opportunities and expected copper deficits continue to enhance Freeport-McMoRan Inc. (NYSE:FCX)’s appeal.

The company continues to operate in a competitive global mining industry, but the strong asset base and operational expertise place it well among its peers.  Freeport-McMoRan Inc. (NYSE:FCX)’s focus on copper production is expected to support growth given the favourable outlook for the metal.