Is It Too Late to Buy Freeport-McMoRan Stock?
Copper miner Freeport-McMoRan's (NYSE: FCX) stock is up a whopping 213% over the last year and, despite a recent pullback, is up 39% in 2021 alone. But, of course, when stocks make such drastic moves, it's usually time to take a breather, and at the very least, start to consider reducing your position. Is it too late to buy into the stock, or could it have even more room to run?
To answer the question, you have to start and finish with a discussion on the price of copper. In principle, a mining stock should be valued based on an investor's estimate of the long-term weighted price of copper multiplied by its reserves. However, in reality, the market tends to price stocks based on the current price of the commodity in question.
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Source Fool.com
