China Real Estate Market Crash: 5 Stocks at Risk

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

Number of Hedge Fund Holders: 68

Freeport-McMoRan Inc. (NYSE:FCX) is a major producer of copper and China consumes roughly 50% of the world’s produced copper. On August 2, Reuters reported that China imported 0.37 million tonnes of refined copper in June and imported roughly 1.87 million tonnes in the first-half of 2022. However, if the housing market in China crashes, so does the demand for copper, and Freeport-McMoran Inc. (NYSE:FCX) could suffer a drastic drop in demand as a result. As of August 11, FCX has lost 23.65% year-to-date.

On July 21, Freeport-McMoran Inc. (NYSE:FCX) reported its financial results for the company’s fiscal Q2 of 2022. It reported earnings per share of $0.58, which missed Wall Street estimates by $0.07. The company’s revenue for the quarter amounted to $5.42 billion, which was down 5.78% year-over-year, and also widely missed expectations, falling over $724 million short of estimates. On July 22, Deutsche Bank analyst Abhi Agarwal lowered his price target on Freeport-McMoRan Inc. (NYSE:FCX) to $35 from $37 and reiterated a ‘Hold’ rating on the shares.

At the end of Q1 2022, 68 hedge funds held $4.1 billion worth of stakes in Freeport-McMoran Inc. (NYSE:FCX), up from 66 positions in the previous quarter worth $3.77 billion. Fisher Asset Management owns over 52 million shares of Freeport-McMoran Inc. (NYSE:FCX) worth $1.52 billion as of June 30.

Here is what Carillon Tower Advisers, an investment management firm, had to say about Freeport-McMoran Inc. (NYSE:FCX) in its “Carillon Scout Mid Cap Fund” first-quarter 2022 investor letter:

“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.”

You can also take a look at 11 Best Housing Stocks To Buy In 2022 and Housing Market Predictions for 2022 and 10 Stocks to Watch.

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