There are a number of promising looking new stocks in our Weekly Ranking Update report this week, but the one that shines the most is Freeport-McMoRan Copper & Cold (FCX). FCX holds high across-the-board rankings, similar to where OskKosh (OSK) stood a few weeks ago. Currently FCX is at $95.51, and holds the highest rating for all four key factors that we calculate: 1) Relative Value; 2) Operating Momentum; 3) Analyst Revision Momentum; and 4) Fundamental Quality.
Where did our ratings stand on August 31 when the stock was $71.99 or even just a few days ago on September 30, when it was $85.39, when it really would have helped us? FCX was previously ranked highly for Relative Value, Operating Momentum and Fundamental Quality, but poorly for Analyst Revisions. On August 31, its Analyst Revision Momentum rating was the worst possible score -- a 1. By September 30 -- and in retrospect this could have been the telltale sign for higher move -- Analyst Revision Momentum was given a slightly higher rating -- a 2 -- and the stock price was moving up in tandem. Since we know that analyst revisions lag stock prices, one could have made a logical guess that the stock price was presaging further upgrades, which may have been reinforced by even further stock gains.
Are the gains over for FCX? Probably not. As a large-cap stock emblematic of commodity inflation, this could be a go-to name for institutional portfolio managers for some time. The party may just be getting started for FCX.
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Disclosure: No positions at the time of posting