Can Freeport-McMoRan Stock Recover If Markets Fall?
Freeport-McMoRan (FCX)[1] stock is down 11.4% in 5 trading days. The recent slide reflects renewed concerns around its Grasberg mine restart and volatile copper prices, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story? Before judging its downturn reslience, let's look at where Freeport-McMoRan stands today.
- Size: Freeport-McMoRan is a £87 Bil company with £26 Bil in revenue currently trading at £60.49.
- Fundamentals: Last 12 month revenue growth of 1.8% and operating margin of 25.1%.
- Liquidity: Has Debt to Equity ratio of 0.12 and Cash to Assets ratio of 0.07
- Valuation: Freeport-McMoRan stock is currently trading at P/E multiple of 39.4 and P/EBIT multiple of 12.9
- Has returned (median) 30.3% within a year following sharp dips since 2010.
These metrics point to a Weak operational performance, alongside High valuation - making the stock Unattractive. For details, see Buy or Sell FCX Stock[3] That brings us to the key consideration for investors worried about this fall: how resilient is FCX stock if markets turn south?
This is where our downturn resilience framework comes in. Suppose FCX stock falls another 20-30% to £42 - can investors comfortably hold on? Turns out, the stock has fared much worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered.
Below, we dive deeper into each such downturn.
Trefis: FCX Stock Insights
2022 Inflation Shock
- FCX stock fell 51.7% from a high of £51.93 on 25 March 2022 to £25.09 on 14 July 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 29 April 2024
- Since then, the stock increased to a high of £68.82 on 25 February 2026 , and currently trades at £60.49
| % Change from Pre-Recession Peak | -51.7% | -25.4% |
| Time to Full Recovery | 655 days | 464 days |
2020 Covid Pandemic
- FCX stock fell 60.8% from a high of £13.53 on 13 January 2020 to £5.31 on 18 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 15 July 2020
| % Change from Pre-Recession Peak | -60.8% | -33.9% |
| Time to Full Recovery | 119 days | 148 days |
2018 Correction
- FCX stock fell 57.4% from a high of £19.99 on 22 January 2018 to £8.51 on 8 October 2019 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 13 November 2020
| % Change from Pre-Recession Peak | -57.4% | -19.8% |
| Time to Full Recovery | 402 days | 120 days |
2008 Global Financial Crisis
- FCX stock fell 86.7% from a high of £62.93 on 20 May 2008 to £8.40 on 5 December 2008 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 28 January 2026
| % Change from Pre-Recession Peak | -86.7% | -56.8% |
| Time to Full Recovery | 6,263 days | 1,480 days |
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References
- ^ Freeport-McMoRan (FCX) (www.trefis.com)
- ^ FCX Dip Buy Analysis (www.trefis.com)
- ^ Buy or Sell FCX Stock (www.trefis.com)
- ^ High Quality (HQ) Portfolio (www.trefis.com)
- ^ HQ Portfolio performance metrics (www.trefis.com)