Is Freeport-McMoRan Stock a Buy?
The bulls and bears continue to press their arguments about the viability of copper miner Freeport-McMoRan's (NYSE: FCX) stock. It's a nuanced debate that speaks to many of the broader investing themes that stock buyers (and Freeport-McMoran investors) are wrestling with so far in 2023.
There are three ways that investors think about what guides copper prices, and they usually focus on the demand side of the equation. I'll return to the case for Freeport-McMoRan specifically in a moment, but if investors want a more in-depth discussion of the stock (including a discussion of the supply side), they can find it in the linked article.
With regards to demand, first, copper is traditionally seen as a play on global economic growth due to its widespread use in multiple industries. That's demonstrated in the following chart of global copper consumption by end market use. Total annual consumption is projected to rise from 28.4 million tonnes in 2020 to 45.3 million tonnes in 2040 (a 60% jump).
Source Fool.com
