Why Freeport-McMoRan is Poised to Bounce Back

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, global mining giant Freeport-McMoRan Copper & Gold (NYSE: FCX  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Freeport, and see what CAPS investors are saying about the stock right now.

Freeport facts

   

Headquarters (founded)

Phoenix, Ariz. (1987)

Market Cap

$29.3 billion

Industry

Diversified metals and mining

Trailing-12-Month Revenue

$17.7 billion

Management

CEO Richard Adkerson

CFO Kathleen Quirk

Return on Equity (average, past 3 years)

34.9%

Cash/Debt

$3.7 billion / $3.5 billion

Dividend Yield

3.3%

Competitors

BHP Billiton (NYSE: BHP  )

Newmont Mining (NYSE: NEM  )

Southern Copper (NYSE: SCCO  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 97% of the 5,965 members who have rated Freeport believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, All-Star dcgatlanta, tapped the stock's recent slide as a particularly solid bargain opportunity:

Market reaction to 2 acquisitions has been severe. [Freeport] has good balance sheet, generates a lot of free cash and pays a 3.3% dividend. The acquisitions will diversify their revenue presumably lowering company risk to copper & gold price swings.

If you want market-thumping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong four-star rating, Freeport may not be your top choice.

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Read/Post Comments (2) | Recommend This Article (3)

Comments from our Foolish Readers

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  • Report this Comment On December 07, 2012, at 8:00 PM, healthpicker wrote:

    @ $30 this is a steal. wish i had liquidity for more.

  • Report this Comment On December 07, 2012, at 9:35 PM, anuragupta wrote:

    I sold after holding it for 6 years. After the acquisition of poor quality assets in a non-core business of chummy management, this is now a debt saddles firms. All metrics next years will appear far worse than they to today. FCX did not need to diversity out of its flourishing and evergreen metals business.

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