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It's a good time to be a copper investor. Copper is needed for data centers, and data centers are proliferating across the U.S. Copper is needed for wind turbines, too, and electric vehicles reportedly use up to four times as much copper as traditional cars. The International Energy Agency (IEA) is estimating that global copper demand will jump some 17%, from 26.7 million tonnes in 2024 to 31.3 million tonnes by 2030.
Could investing in a copper-mining company set you up for life? How about Freeport-McMoRan (NYSE: FCX)? It describes itself as "dedicated to positively contributing to society by supplying the world with copper -- Responsibly, Reliably and Relentlessly." It sports a portfolio of long-lived copper assets around the world. (It also produces gold and molybdenum, but its primary focus is on copper.)
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Indeed, its portfolio features the Grasberg mine in Indonesia -- the world's second-largest copper mine and largest gold mine. In 2025, Freeport-McMoRan produced 3.4 billion pounds of copper, accounting for about 70% of U.S. refined copper production.
It clearly looks like a great buy, right? Well, maybe not. Its valuation is on the steep side. Its price-to-earnings (P/E) ratio was recently 35, well above the five-year average of 22, and its price-to-sales ratio of 4.0 was also well above the five-year average of 2.6. It's smart to buy into healthy and growing companies, but you don't want to do so at a high price.
I would be careful about investing in the company at recent levels. The more overvalued a stock is, the less likely it is to set you up for life.
You might instead add it to your watch list, waiting for a pullback -- because it does seem like demand for copper is growing, and copper specialists should profit from that. Or maybe start a small position in it if you're really bullish on it. (There are other copper-related companies to learn about and consider.)
Consider copper-focused exchange-traded funds (ETFs), too -- such as the Global X Copper Miners ETF, which encompasses 40 companies, including Freeport-McMoRan.
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Selena Maranjian has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Could Buying Freeport-McMoRan (FCX) Stock Today Set You Up for Life? was originally published by The Motley Fool
