Freeport-McMoRan (FCX) is a leading copper producer with a global portfolio of long-lived copper assets, including the Grasberg mine in Indonesia, the world's second-largest copper mine and largest gold mine. The company produced 3.4 billion pounds of copper in 2025, accounting for about 70% of U.S. refined copper production. Copper demand is expected to grow significantly, driven by its use in data centers, wind turbines, and electric vehicles. The International Energy Agency (IEA) estimates that global copper demand will rise 17%, from 26.7 million tonnes in 2024 to 31.3 million tonnes by 2030.
Despite the promising outlook for copper, Freeport-McMoRan's shares appear overvalued at recent levels. Its price-to-earnings (P/E) ratio was recently 35, well above the five-year average of 22, and its price-to-sales ratio of 4.0 was also higher than the five-year average of 2.6. While the company is well-positioned to benefit from growing copper demand, investing at current valuation levels may not be the best strategy. Experts suggest adding the stock to a watch list or starting a small position if bullish on copper.
Alternative investment options include copper-focused exchange-traded funds (ETFs), such as the Global X Copper Miners ETF, which includes 40 companies, including Freeport-McMoRan. The Motley Fool Stock Advisor team did not include Freeport-McMoRan in their list of top 10 stocks to buy now, highlighting other potential investment opportunities with strong growth prospects.