Why Did Freeport-McMoRan Plunge 7.07%?

On April 3, 2025, Freeport-McMoRan's stock experienced a significant drop of 7.07% in pre-market trading, indicating a potential shift in investor sentiment towards the mining giant.

Freeport-McMoRan has been facing several negative signals, which have contributed to its weak performance. The company's consolidated average realized copper price for the first quarter of 2025 is expected to be around $4.40 per pound, which may have influenced the recent decline in its stock price.

Over the past month, Freeport-McMoRan's stock has returned +9.3%, outperforming the broader market and the Zacks S&P 500 composite. However, the recent drop suggests that investors may be reassessing the company's prospects in light of current market conditions and earnings estimates.

Analysts have revised their earnings estimates for Freeport-McMoRan, with the consensus estimate for the current quarter indicating a change of -21.9% from the year-ago quarter. The consensus earnings estimate for the current fiscal year indicates a year-over-year change of +11.5%, while the estimate for the next fiscal year indicates a change of +31.7%.

Despite the recent drop, Freeport-McMoRan's stock may still be considered a hold, as indicated by its Zacks Rank #3. The company's valuation metrics, such as its price-to-earnings (P/E) and price-to-sales (P/S) ratios, suggest that it is trading at a discount to its peers, which may provide some support for its stock price in the near term.