Freeport-McMoRan (FCX) is a leading copper producer, well-positioned to benefit from the growing demand for the metal. Copper is essential for data centers, wind turbines, and electric vehicles, which use up to four times as much copper as traditional cars. The International Energy Agency (IEA) predicts global copper demand will rise 17% from 26.7 million tonnes in 2024 to 31.3 million tonnes by 2030. Freeport-McMoRan operates the Grasberg mine in Indonesia, the world's second-largest copper mine, and produced 3.4 billion pounds of copper in 2025, accounting for about 70% of U.S. refined copper production.
Despite its strong position, Freeport-McMoRan's valuation appears steep. 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 a promising investment due to rising copper demand, its current valuation may not be the best entry point.
Investors might consider adding Freeport-McMoRan to their watch list and waiting for a pullback, or starting a small position if they are particularly bullish. Alternatively, copper-focused exchange-traded funds (ETFs), such as the Global X Copper Miners ETF, could be a way to gain exposure to the sector without relying on a single company.
The Motley Fool Stock Advisor analyst team did not include Freeport-McMoRan in their list of top 10 stocks for investors, suggesting they see better opportunities elsewhere. The team's past recommendations, such as Netflix and Nvidia, have delivered substantial returns, highlighting the importance of careful stock selection.