8 Best Rare Earth Stocks and ETFs

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

Number of Hedge Fund Holders: 86

Freeport-McMoRan Inc. (NYSE:FCX) is a major mining company that digs for valuable minerals across three continents: North America, South America, and Indonesia. Established in 1987 and headquartered in Phoenix, Arizona, the company primarily focuses on copper, gold, and molybdenum, while also exploring other metals. Freeport-McMoRan Inc. (NYSE:FCX) ranks first on our list of the best rare earth stocks and ETFs.

Freeport-McMoRan Inc. (NYSE:FCX) is currently developing a geothermal heating system for its copper mines in Arizona. This sustainable heat source will improve copper recovery from previously mined materials. The project also includes improvements to the electrical grid for better reliability. The project has a total cost of $175 million and is expected to take 5-7 years to complete.

Freeport-McMoRan Inc. (NYSE:FCX)  reported a strong Q1 2024 with adjusted EBITDA of $2.5 billion and operating cash flow of $1.9 billion. This positive performance was driven by a favorable copper price, averaging $3.94 per pound. The company highlighted efficient operations in the U.S. despite lower ore grades, while South American and Indonesian mines exceeded expectations. Capital expenditures were $800 million, excluding a $500 million investment in their Indonesian smelter project, which is on track for a June 2024 start.

Wall Street analysts are bullish on Freeport-McMoRan (NYSE:FCX), with an average price target of $53.86. This represents a potential increase of over 12% from the current price levels. Analysts’ predictions range from a high of $60 to a low of $46 per share. The majority of the analysts (8 out of 14) have given the stock a “Buy” rating.

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

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