As the third quarter gets underway, traders may be looking to protect their profits after a strong first half from 2024. Freeport-McMoRan Inc (NYSE:FCX) And Newmont Corporation (NYSE:NEM) are stocks that you should avoid over the next three months because they have historically underperformed.
FCX and NEM are the worst mining stocks on a list of 25 underperforming S&P 500 Index (SPX) stocks to own in the third quarter, going back 10 years, according to Schaeffer’s Senior Quantitative Analyst Rocky White. The former ended the quarter down 80% over the past decade, while the latter was down 70% of the time, with average losses of 7.2% and 10%, respectively.
Freeport McMoRan Shares FCX is up 4.2% to trade at $50.75 at last check, though the company said it expects lower copper and gold sales for the second fiscal quarter. Shares have cooled from their 13-year high of $55.23 on May 20, and despite today’s gains, they face familiar pressure at their 40-day moving average, which was set in June. So far in 2024, FCX is up 19.3%.
Last seen up 4% to $43.37, Newmont shares is trying to break a ceiling that formed after it cooled from its peak of $44.59 on May 20, 2024. The stock is up a narrow 4.6% this year but has gained 22% over the past nine months.
