Freeport-McMoRan (FCX) Stock Higher as Commodities Rally
NEW YORK (TheStreet) -- Freeport-McMoRan (FCX) - Get Report stock is increasing 6.63% to $11.10 in late-afternoon trading on Monday as the natural resource company benefits from today's rally in commodities.
Prices of metals such as copper and gold are higher this afternoon on a weaker dollar, which makes the dollar-denominated commodities less expensive to foreign buyers.
Copper for July delivery is rising 0.75% to $2.09 per pound on the COMEX, while gold for June delivery is up 0.17% to $1,274.80 per ounce.
Gold prices are further benefiting as investors' concerns about the strength of the global economy boost demand for safe-haven metals.
Additionally, oil prices have hit six-month highs today following supply outages in Nigeria and Venezuela as well as a drop in U.S. production and frozen inflows of Canadian crude due to wildfires in Alberta's oil sands region, Reuters reports.
"The oil market has gone from nearing storage saturation to being in deficit much earlier than we expected," Goldman Sachs (GS) wrote in a note. The firm now expects oil prices to increase to $50 per barrel in the second half of the year vs. its previous forecast between $40 and $45 per barrel.
Crude oil (WTI) is up 3.42% to $47.79 per barrel and Brent crude is rising 2.40% to $48.97 per barrel this afternoon.
Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D.
Freeport's weaknesses include its generally high debt management risk, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
You can view the full analysis from the report here: FCX
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.
