Quarter: First-quarter profit multiplied to $945 million, or $2, as revenue soared 68%. The operating margin rose from 27% to 47%. The balance sheet stores $3.8 billion of cash and $6.1 billion of debt, translating to a debt-to-equity ratio of 0.6.
Stock: Freeport-McMoRan has appreciated 36% during the past year, beating U.S. indices. It trades at a price-to-projected-earnings ratio of 7.1, a 54% discount to its peer average. Its PEG ratio of 0.2 reflects an 80% discount to estimated fair value.
Consensus: Of firms covering Freeport, 13, or 65%, rate its stock "buy", six rate it "hold" and one ranks it "sell." Barclays (BCS) predicts that the stock will gain 74% to $120. JPMorgan (JPM) values it at $111, leaving 41% of potential upside.