Freeport-McMoRan Copper & Gold
Forward P/E: 11
Collapsing prices for precious and industrial metals have been most unkind to Freeport-McMoRan Copper & Gold (FCX), as shares are up just 6.4% so far this year.
On the upside, FCX’s underperformance has made a quality stock look cheap. The forward P/E offers a 25% discount to the broader market, despite having a stronger growth rate. Analysts forecast FCX to post annual average earnings growth of 11%, while the S&P 500 is seen clipping along at just 9.8%.
Throw in a return on equity of more than 15% and a dividend yield of 3.4%, and you’ve got another cheap, high-quality name suitable for income now — and price appreciation later when commodities turn up, too.