7 Best Metal Stocks to Buy According to Analysts

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

Average Upside Potential: 28.56%

Number of Hedge Fund Holders: 88

Freeport-McMoRan Inc. (NYSE:FCX) is a prominent producer of copper, gold, and molybdenum, with a significant presence in both North and South America, as well as Indonesia. Being a significant participant in the copper market, the company stands to gain from growing demand, which is mostly being driven by infrastructure and green energy projects.

Freeport-McMoRan Inc. (NYSE:FCX) recorded outstanding earnings for the Q4 ended December 31, 2024. With copper prices averaging $4.21 per pound, EBITDA increased 14% year over year to $10 billion. Increased production levels and higher realized prices resulted in a 35% increase in the company’s operational cash flows, which reached $7 billion. By redeeming $730 million in senior notes and maintaining net debt at about $1 billion, this expansion allowed the company to further solidify its financial position. Accordingly, $4.7 billion was paid through dividends and share repurchases.

Furthermore, Freeport-McMoRan Inc. (NYSE:FCX) is expanding its copper leach operations in parallel with its strategic development, which helped it achieve a noteworthy 50% increase in additional copper output in 2024. The company’s goal is to further optimize its manufacturing capacity by achieving a run rate of 300 million pounds by the end of 2025.

Freeport-McMoRan Inc. (NYSE:FCX) is prioritizing cost effectiveness by implementing innovative technology, such as autonomous haulage at its Bagdad mine, which is expected to be in service in 2025. However, there have been certain challenges in its operations in Indonesia, including a 7.5% export tax and delays in export permits. Looking ahead, copper, which could soon be regarded as a “critical mineral,” might be eligible for a 10% tax credit, which could lead to benefits of up to $500 million.

Thus, Freeport-McMoRan Inc. (NYSE:FCX) is one of the best metal stocks to watch because of its ongoing investments in efficiency, automation, and organic growth.