2 Mining Stocks to Buy in February
It's no secret that mining commodity prices, in this case copper and lithium, can be volatile, and it's hard to predict where they are heading. Still on the basis that current prices are the best estimate of where prices will be in a year or so, both Freeport-McMoRan (NYSE: FCX) and (NYSE: ALB) look like unmissable value. Here's why.
Ultimately, the idea is that both stocks have less downside potential than upside, making them good value stocks looking for asymmetric stock picks. Freeport-McMoRan looks like a great value for three reasons.
First, in every earnings presentation, the company lays out its earnings before interest, taxes, depreciation, and amortization (EBITDA) sensitivity to copper prices. The last update for EBITDA in 2027/2028 assumes $11 billion at a price of copper of $4 per pound, and $19 billion at a price of $6 per pound. Given that the current price is $5.66, a rough estimate would be $17.6 billion, and assuming the current enterprise value (EV) of $96.9 billion, Freeport would trade on an EV/EBITDA multiple of just 5.5 times in 2027 -- a historically very favorable valuation.
Source Fool.com
Freeport-McMoRan Inc. Aktie
Volle Unterstützung für Freeport-McMoRan Inc.: Nur Buy-Einschätzungen, keine Sell-Einschätzungen.
Mit einem Kursziel von 62 € für Freeport-McMoRan Inc. könnte eine leichte Steigerung gegenüber dem aktuellen Kurs von 60.89 € erreicht werden.
