Top Picks 2018: Freeport-McMoRan (FCX)

01/02/2018 5:00 am EST

Focus: COMMODITIES

Jim Powell

Principal Analyst, Global Changes & Opportunities

The explosive growth of electric cars, both here and abroad, is one of the developments that have exceptional potential to create investment profits, suggests Jim Powell, editor of Global Changes & Opportunities Report.

Because electric cars use from between three and four times as much wire as conventional cars, I think your first investment should be in copper.

In my opinion, the company that will profit the most from the rising demand for copper is Freeport-McMoRan (FCX).

The company is the world’s largest publicly-traded producer. Freeport mines copper in the US, Indonesia, Peru, and Chile. Freeport-McMoRan also has some molybdenum, gold, and energy operations.

After remaining on the floor during most of the slow economic recovery, copper prices have been rising this year.

The company’s second quarter net income jumped 11.4% vs. a loss last year. Accordingly, the stock is starting to move up – but I think it has a long way to go.

The price of copper, and the fortunes of copper producers, can be volatile, but investors who buy Freeport-McMoRan for their long-term accounts should be well rewarded. Even if the stock only moves back to its mid-2014 level, investors will do very well.

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