Freeport-McMoRan Copper & Gold, Inc. (FCX)

S&amp;P 500: 1,273.69
Change: 1.71%

CAPS Rating:

Through its subsidiaries, the Company engages in the exploration, mining, and production of copper, gold, and silver. It also smelts and refines copper concentrates, and markets the refined copper products.

View All Commentary (FCX)

Recs

13

Avatar Counterfeit399 (84.32) Submitted: 2/13/08 6:48 PM : Start Price: $85.80 FCX Score: 29.26

For Freeport the numbers speak for themselves:

Trailing P/E = 12.5
Forward P/E = 9
PEG = 0.20
Next 5 Year Growth Estimate (per year) = 50.75%

These numbers show that when one buys FCX one is not only buying a value company but also a growth one as well. A forward P/E for 12 is cheap for any company yet alone one that is growing at 50% per year. These low multiples will not allow the stock to go down any further than it currently is priced, the only thing that it can do is go up.

FCX will have to go up 35% just to maintain its current P/E ratio of 12. Also, demand for copper will continue to rise and gold prices will continue to increase because of the weak United States and Western European economies.

Report this Post Replies: 3 | Reply