InvestBattle | Freeport-McMoRan vs Nucor

April 26, 2024by

As we noted in the last week’s issue, over the past three months, one of the leaders of growth in the S&P 500 index has been the Metals & Mining industry +21.0%.

Some of the largest companies in this industry (by market capitalization): Freeport-McMoRan ($71.1B), one of the largest producers of copper, gold and molybdenum in the world, and Nucor ($45.7B), ranked No. 1 in the US and No. 11 in the world among steel companies.

According to the latest quarterly reporting data, we analyzed each company’s profitability, strength, and efficiency criteria using the methodology of Stanford University professor Joseph Piotroski.

As you can see, Nucor is performing better in terms of fundamentals and is superior to Freeport-McMoRan in terms of sustainability.

Over the past 3 months, Freeport-McMoRan stock has risen by +27.9%, while Nucor has increased by +14.7% (the S&P 500 index has risen by +2.6%). Freeport-McMoRan outperformed its closest competitor and demonstrated better results compared to the index.

So, the winner in today’s battle is Nucor (NUE). Although Freeport-McMoRan’s shares are showing better dynamics, Nucor’s business looks healthier in terms of liquidity and funding.

* This is not an investment recommendation. It is up to each individual to decide which criteria to favor when making an investment decision, taking into account their goals and individual risk tolerance.
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