On Thursday, Freeport-McMoRan Inc. (NYSE:FCX) shares rallied more than 8% as the copper price extended Wednesday’s gains. The Comex December copper futures price registered a 2.3% increase to $4.244 per pound, while London copper rose 2.6% to $9,280 per ton.
Freeport-McMoRan shares still trade more than 23% below the current 52-week high of $46.10 reached in May. As a result, the stock has swung to a net year-to-date gain of about 26.46 following Thursday’s spike.
The company announced a quarterly dividend per share of $0.75 last month payable on 1st November to shareholders of record as of 15th October.
Freeport looks undervalued
From an investment perspective, Freeport-McMoRan shares look significantly undervalued based on the forward price-earnings ratio of 8.98. As a result, value investors could find the stock as an exciting option for their portfolios.
Moreover, analysts expect its earnings per share to grow by a whopping 344% this year, before rising at an average annual rate of 18% over the next five years. Therefore, it could also be an attractive option for growth investors.
As a result, FCX could be a great stock to buy despite its value doubling over the last 12 months.
Source – TradingView
Is a channel breach incoming?
Technically, Freeport shares seem to be trading within a descending channel formation in the intraday chart. However, the stock has recently bounced back of the trendline support, avoiding a downward breakout.
As a result, the stock has rallied closer to the trendline resistance, creating an opportunity for an upward channel breach. Therefore, with the stock far from reaching overbought conditions, a breakout could happen soon.
Investors could target profits at about $36.65 or higher at $38.75, while $32.14 and $29.82 are crucial support zones.
It could be time to buy FCX
In summary, although Freeport-McMoRan shares advanced more than 8% on Thursday, the stock still trades at attractive valuation multiples whilst offering exciting growth prospects.
Therefore, with shares still far from reaching overbought conditions, it could be time to buy FCX stock.
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