5 American Stocks That Will Benefit from the New Cold War

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

Number of Hedge Fund Holders: 56

Freeport-McMoRan Inc. (NYSE:FCX) is an Arizona-based company engaged in the mining of mineral properties in North America, South America, and Indonesia. The company explores for copper, gold, molybdenum, silver, and other precious metals, as well as oil and gas. Cutting reliance on China for precious metals as a consequence of the new Cold War will potentially benefit American mining stocks like Freeport-McMoRan Inc. (NYSE:FCX). 

On September 21, Freeport-McMoRan Inc. (NYSE:FCX) declared a quarterly dividend of $0.15 per share, in line with previous. The dividend is payable on November 1, to shareholders of record on October 14. The forward yield was 2.02%.  

RBC Capital analyst Sam Crittenden on July 22 maintained a Sector Perform rating on Freeport-McMoRan Inc. (NYSE:FCX) and lowered the price target on the shares to $35 from $46. The company posted another solid operating quarter, though the analyst also sees ongoing volatility in copper prices amid concerns over a future slowdown in demand during a recession. Freeport-McMoRan Inc. (NYSE:FCX) shares could respond swiftly when sentiment improves, the analyst added. 

According to Insider Monkey’s data, 56 hedge funds were bullish on Freeport-McMoRan Inc. (NYSE:FCX) at the end of Q2 2022, compared to 68 funds in the earlier quarter. Ken Fisher’s Fisher Asset Management featured as the leading position holder in the company, with 52 million shares worth $1.5 billion. 

In its Q1 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Freeport-McMoRan Inc. (NYSE:FCX) was one of them. Here is what the fund said:

“Supply chains eased for some goods, but remained challenged for many commodities including energy, agriculture, and fertilizer due to war and general scarcity, and also in many consumer products as semiconductors remained in short supply. Copper and gold producer Freeport- McMoRan (NYSE:FCX) rose as copper prices remained strong due to supply shortages and growing use in renewable energy systems and electric vehicles.”