Freeport-McMoRan Stock: Buy, Sell, or Hold?

Core Viewpoint - Freeport-McMoRan is positioned to benefit from the increasing demand for copper driven by the global shift towards electrification and renewable energy sources [1][3][4] Reasons to Buy - Copper is an essential industrial metal with diverse applications, particularly in electrical conductivity, making it crucial for the growing use of electricity in various sectors, including electric vehicles and renewable energy [2][3] - The price of copper has more than doubled since its lowest point in 2020, indicating strong demand and potential for further price increases [3][4] Reasons to Hold - Freeport-McMoRan's stock has increased over 750% since its low in March 2020, suggesting that much of the positive outlook may already be reflected in the stock price [5] - The company offers a modest dividend yield of 1.2%, which includes a variable component that rewards shareholders when copper prices are high, providing an additional incentive to hold the stock [6] Reasons to Sell - The volatility of commodity prices poses a risk, as external factors such as supply disruptions or government interventions can lead to significant price changes in copper [7][8] - Investors who have realized substantial gains may consider locking in profits, especially if there are concerns about a potential downturn in copper prices [8][9] Overall Assessment - Freeport-McMoRan's performance is closely tied to copper prices, and belief in the long-term demand for copper is essential for investment decisions regarding the company [10]