8 Best Copper Stocks To Buy According to Hedge Funds

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

Number of Hedge Fund Holders: 74

Freeport-McMoRan Inc. (NYSE:FCX) is the best copper stock to buy according to hedge funds. It is a major international mining company based in Phoenix, Arizona. It primarily focuses on extracting and producing copper, gold, and molybdenum, which are essential metals used in various industries. Some of the significant mines owned by the company include Grasberg in Indonesia, which is one of the largest copper and gold deposits globally, Morenci, and Cerro Verde.

Two main factors make Freeport-McMoRan Inc. (NYSE:FCX) an attractive investment opportunity. Firstly, its leaching technology is a critical differentiating factor that enables the company to enhance copper production from low-grade ores and previously unrecoverable materials. During the first nine months of 2024, the incremental copper production from its leach initiative was nearly 70% higher than the comparable period last year. This technology stands out as it allows the company to produce substantial amounts of copper without investing in new mining sites. Management estimates that the technology requires an investment of less than $1 billion, which is considerably less than the multibillion-dollar capital investment that a mining expansion project takes.

Secondly, the company has strategically positioned itself to benefit from secular demand trends for copper driven by electrification. During the third quarter of fiscal 2024, Freeport-McMoRan Inc. (NYSE:FCX) reported robust demand from the United States and China as well despite its weak property sector. As a result, its copper sales for the quarter came in 2% above the guidance taking its adjusted EBITDA to $2.7 billion.

While we acknowledge the potential of Freeport-McMoRan Inc. (NYSE:FCX) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than FCX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

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