3 Multi-Metal Stocks for Income and Long-Term GrowthSouthern Copper NYSE: SCCO reported record quarterly sales, adjusted EBITDA and net income for the second quarter of 2026, as sharply higher metals prices offset lower copper production in Peru, Chief Financial Officer Raúl Jacob Ruisánchez told investors on the company’s earnings call.
Jacob, Southern Copper’s vice president of finance, treasurer and CFO, said the company’s results reflected “operating excellence” amid sustained demand for copper and its by-products. He was joined on the call by Leonardo Contreras, Southern Copper’s CEO and board member.
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Copper Cools After Record January—But This ETF Is a Buy-the-Dip OpportunitySales for the quarter rose 41% year over year to $4.3 billion, an increase of $1.2 billion from the second quarter of 2025. Adjusted EBITDA reached a record $2.96 billion, up 60% from $1.79 billion a year earlier, while adjusted EBITDA margin expanded to 67% from 59%. Net income rose 72% to a record $1.67 billion, compared with $973 million in the prior-year quarter. Net income margin increased to 39% from 32%.
For the first six months of 2026, adjusted EBITDA rose 58% to $5.57 billion, while net income was 69% higher than in the same period of 2025. Cash flow from operating activities totaled $3.68 billion in the first half, up 117% year over year, which Jacob attributed to stronger operating cash generation from higher sales and a $719 million decrease in operating asset and liability requirements.
Higher Metals Prices Drive Revenue Growth The Copper Barbell: How to Profit From the Shortage—and Avoid the Dilution TrapJacob said the London Metal Exchange copper price averaged $6.04 per pound in the second quarter, up 30% from $4.32 per pound in the same quarter of 2025. COMEX copper averaged $6.16 per pound, up 31% year over year. Based on current supply and demand dynamics, Southern Copper estimates a slight copper market deficit for 2026.
Global copper inventories across London Metal Exchange, COMEX, Shanghai and London warehouses totaled 1.123 million tons as of July 21, which Jacob said represented roughly 15 days of global demand.
Copper represented 73% of Southern Copper’s sales in the quarter. Copper sales increased 38% despite a 1.5% decline in volume, reflecting the higher pricing environment. Among by-products, molybdenum sales rose 34%, zinc sales increased 24% and silver sales climbed 86%, with all three benefiting from higher prices that were partially offset by lower volumes.
Molybdenum prices averaged $29.44 per pound, up 43% from the prior-year quarter, while silver prices averaged $73.49 per ounce, up 118%. Zinc averaged $1.57 per pound, a 31% increase from the second quarter of 2025.
Production Falls in Peru, Rises in Mexico Southern Copper produced 230,662 tons of copper in the second quarter, down 3.5% from the same period last year. Jacob said the decline reflected a 12% drop in production in Peru, mainly due to lower ore grades and recoveries at Toquepala and Cuajone. That was partially offset by a 3.2% increase in Mexican operations, driven by higher production at Buenavista, La Caridad and Inca.
In response to a question from Barclays analyst Richard Garchitorena, Jacob said the lower production was mainly tied to ore grades at Cuajone, which translated into about 35,000 tons of lower copper production, with the remaining decline coming from Toquepala. He said Southern Copper now expects to produce 917,000 tons of copper in 2026, above its initial plan of about 910,000 tons.
Molybdenum production fell 11% year over year due to lower ore grades at all mines, though the company now expects to produce 27,900 tons in 2026, 7% above its initial plan. Silver production declined 4% in the quarter, despite higher output at La Caridad and Inca, because of lower production at Toquepala, Cuajone and Buenavista. Southern Copper expects to meet its plan to produce 24 million ounces of silver this year. Mine zinc production fell 14% to 39,250 tons, and the company expects 2026 zinc production of 163,900 tons.
Jacob said he expects sales volumes to improve somewhat in the second half of the year as material processed in the first half becomes available for sale.
Costs Rise, but Margins Improve Total operating costs and expenses increased $202 million, or 14%, from the second quarter of 2025. Jacob cited higher operating materials, purchased copper, diesel and fuel, workers’ participation, translation differences and other factors. These were partly offset by lower repair materials and inventory consumption.
Southern Copper reported operating cash costs before by-product credits of $2.29 in the second quarter, down $0.02 from the first quarter. Including by-product credits, operating cash costs were $0.05, compared with negative $0.11 in the first quarter. Jacob said the company still considered that “an excellent mark.”
By-product credits totaled $1.11 billion, or $2.24, in the second quarter, down 7% from the first quarter. Credits increased for molybdenum and zinc but declined for silver and sulfuric acid.
Capital Projects Advance in Peru and Mexico Southern Copper’s capital investment program for the decade exceeds $20.5 billion, including projects in Peru and Mexico. The company spent $423 million on capital investments in the second quarter, up 79% year over year, and $865 million in the first half, up 56% from the prior-year period.
In Peru, Jacob said the company remains committed to advancing Tia Maria, Los Chancas and Michiquillay, which together represent about $10.3 billion of investment. At Tia Maria in Arequipa, the project was 42% complete at the end of June, with 5,817 new jobs created, including 1,254 filled by local applicants. Jacob said mass earthworks were in their final stage and civil works and steel structure assembly had begun in key facilities.
Goldman Sachs analyst Emerson Vieira asked about the desalination plant for Tia Maria and potential delays. Jacob said purchase orders and contracts were being placed for major equipment, including the desalination plant, and that the company did not currently expect a delay.
At Los Chancas in Apurímac, Jacob said illegal miners remain in the project area despite enforcement efforts, hindering progress. At Michiquillay in Cajamarca, reserve estimation, mine planning, hydrologic and hydrogeological assessments, and technical research are underway.
In Mexico, Jacob said El Pilar in Sonora has received the necessary environmental permits and will begin early site preparation work in September. Construction is expected to start in the first quarter of 2027, with production projected for the second half of 2029. The $551 million open-pit project is expected to produce 36,000 tons of copper cathode annually over an 18-year mine life.
Debt Issuance and Dividend Southern Copper issued $1.25 billion of 10-year fixed-rate senior unsecured notes on June 24, due in 2036 with a 5.35% annual interest rate. Jacob said demand totaled $4 billion, or 3.2 times the amount issued. Proceeds will be used by Southern Peru Copper Corporation to develop Tia Maria, finance its capital expenditure program and for general corporate purposes.
The company announced a quarterly cash dividend of $1.10 per share and a stock dividend of 0.012 shares per common share, payable Aug. 27 to shareholders of record as of Aug. 11. Jacob said the total estimated dividend payment, including the cash dividend and equivalent value of the stock dividend, was $3.23 per share.
Looking ahead, Jacob said Southern Copper expects 2027 copper production to be roughly in line with 2026, with some contribution from Tia Maria late in the year. He said production is expected to rise to about 970,000 tons in 2028 and exceed 1 million tons in 2029, supported by Tia Maria, El Pilar and improved ore grades. The company’s longer-term goal remains more than 1.6 million tons of copper by 2033 or 2034 through organic growth.
About Southern Copper (NYSE:SCCO)Southern Copper Corporation NYSE: SCCO is a large, integrated copper producer whose operations span the full value chain from exploration and mining to smelting, refining and the sale of copper and other metal products. The company produces a range of copper products including copper concentrate and refined cathodes, and recovers valuable byproducts such as molybdenum, silver and zinc. Southern Copper concentrates on high-volume, long-life assets designed to support steady production and processing capabilities.
Southern Copper's operations are concentrated in Peru and Mexico, where it owns and operates multiple large-scale mining and processing facilities.
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Southern Copper Corporation (SCCO) Q2 2026 Earnings Call July 22, 2026 11:00 AM EDT
Company Participants
Raul Jacob - VP of Finance, Treasurer & CFO
Conference Call Participants
Richard Garchitorena - Barclays Bank PLC, Research Division
Emerson Vieira - Goldman Sachs Group, Inc., Research Division
Rafael Barcellos - Banco Bradesco BBI S.A., Research Division
Tingshuai Feng - China International Capital Corporation Limited, Research Division
John Tumazos - John Tumazos Very Independent Research, LLC
Presentation
Operator
Good morning, and welcome to Southern Copper Corporation's Second Quarter and 6 Months 2026 Results Conference Call. With us this morning, we have Southern Copper Corporation's Mr. Raul Jacob, Vice President, Finance, Treasurer and CFO, who will discuss the results of the company for the second quarter and 6 months 2026 as well as answer any questions that you may have. The information discussed on today's call may include forward-looking statements regarding the company's results and prospects, which are subject to risks and uncertainties. Actual results may differ materially, and the company cautions not to place undue reliance on these forward-looking statements. Southern Copper Corporation undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. All results are expressed in full U.S. GAAP. Now I'll pass the call on to Mr. Raul Jacob.
Raul Jacob
VP of Finance, Treasurer & CFO
Thank you very much, Carmen. Good morning, everyone, and welcome to Southern Copper's Second Quarter of 2026 Results Conference Call. At today's conference, I'm accompanied by Mr. Leonardo Contreras, CEO of Southern Copper and also a Board member. Let me first begin by mentioning that Southern Copper delivered another exceptional quarter, registering record-breaking results in sales, adjusted EBITDA and net income. These outstanding achievements are driven by operating excellence and reflect our commitment to creating long-term value for our stakeholders in a context marked by sustained
Copper is giving back ground again. COMEX copper futures (HG) traded at 34.3700 as of the 10:00 AM ET, down from yesterday’s close of 34.7600 and sitting 3.51% below the five-day high of 35.6200 set July 20. The pullback comes as global copper inventories sit at their highest level since 2003, roughly 4.5 weeks of consumption, raising fresh doubts about the pace of demand from AI data centers, EVs, and electrification build-outs.
For copper equities, every dime move in the underlying commodity flows almost directly to cash flow. Below, we rank the five NYSE-listed copper miners most exposed to a continued slide, from highest downside sensitivity to lowest.
1. Ero Copper (ERO): The Highest-Beta Name Ero Copper (NYSE:ERO) carries the smallest market cap of the group at $2.86 billion and the highest cost structure. Full-year 2026 C1 cash costs are guided at $2.15 to $2.35 per pound, versus net debt of $490.7 million. That combination of leverage and thin margins makes Ero the most cost-sensitive name in the group. Shares carry a beta of 1.584 and trade at a forward P/E of 6x, cheap for a reason. Q1 revenue of $263.2 million missed the Street’s $341.8 million mark. The analyst consensus target of $35.20 assumes copper stays firm; a sustained retreat would test that thesis quickly.
2. Freeport-McMoRan (FCX): Volume-Constrained but Highly Levered Freeport-McMoRan (NYSE:FCX | FCX Price Prediction) is the largest US-listed pure-play copper producer at a $92.36 billion market cap. Management has flagged that every $0.10 per pound move in copper materially shifts cash flow across its 3.1 billion pound annual sales base. Q1 2026 revenue rose 12.2% to $6.23 billion on realized copper of $5.78 per pound. The Grasberg mud-rush still limits production to roughly 65% of capacity through the second half of 2026, dampening upside torque but not blunting downside. Options positioning skews defensive: the full-chain put/call ratio sits at 0.82, with the August 21 expiration running an outsized 6.28. Shares are down 8.8% over the past month.
3. Teck Resources (TECK): Merger Overhang Meets Copper Weakness Teck Resources (NYSE:TECK) has already been the weakest performer in the group, down 5.43% in the past week and 11.7% over the past month. Q1 2026 revenue jumped 72.2% to $2.78 billion on record copper sales of 155,100 tonnes. But the pending Anglo American merger, targeting roughly $800 million in annual pre-tax synergies, layers regulatory risk on top of commodity risk. Guided 2026 net cash costs of $1.85 to $2.20 per pound leave less cushion than the group’s low-cost leaders.
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4. Hudbay Minerals (HBM): Gold Cushion Softens the Blow Hudbay Minerals (NYSE:HBM) is partially insulated. Gold by-product credits contribute 39% of gross revenue, and consolidated cash costs came in at a stunning negative $1.80 per pound of copper in Q1, far below the guided negative $0.30 to negative $0.10. Realized gold of $4,468 per ounce is doing heavy lifting. Q1 revenue rose 27.3% to $757.3 million, and 22 of 23 covering analysts rate the stock Buy or Strong Buy, per Alpha Vantage’s consensus of 8 Strong Buy and 14 Buy ratings. Bank of America carries a $32.50 target. Still, with a beta of 2.252, HBM trades violently on copper headlines.
5. Southern Copper (SCCO): Best Positioned to Absorb the Drop Southern Copper (NYSE:SCCO) is the group’s fortress balance sheet. Q2 2026 operating cash cost per pound collapsed to $0.05, from $0.63 a year earlier, on the back of by-product credits and higher grades at legacy mines. Revenue jumped 40.6% to $4.29 billion, with adjusted EBITDA margin of 66.6%. At a $156.86 billion market cap and forward P/E of 39x, valuation is stretched, but the operating profile means SCCO stays profitable through moves that would pressure higher-cost peers.
Conclusion Today’s modest copper pullback is a stress test more than a shock. If HG copper breaks below the July 15 low of 33.4100, the pain will not fall evenly: Ero and Freeport carry the most direct downside torque, Teck adds M&A execution risk, and Hudbay and Southern Copper have real by-product buffers. The bull case, S&P Global’s projected 42 million tonnes of copper demand by 2040, is intact. Whether the trade holds through inventory overhang and softer near-term demand is the question worth watching.
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California Public Employees Retirement System raised its stake in Southern Copper Corporation (NYSE:SCCO – Free Report) by 21.2% in the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 192,523 shares of the basic materials company’s stock after acquiring an additional 33,638 shares during the period. California Public Employees Retirement System’s holdings in Southern Copper were worth $33,126,000 at the end of the most recent quarter.
Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in SCCO. National Wealth Management Group LLC acquired a new position in shares of Southern Copper in the 4th quarter valued at approximately $1,281,000. Nordea Investment Management AB boosted its position in shares of Southern Copper by 74.0% during the 4th quarter. Nordea Investment Management AB now owns 258,341 shares of the basic materials company’s stock worth $37,142,000 after acquiring an additional 109,857 shares in the last quarter. Savvy Advisors Inc. bought a new position in Southern Copper in the fourth quarter valued at approximately $1,434,000. Oak Harvest Investment Services bought a new position in Southern Copper in the fourth quarter valued at approximately $7,650,000. Finally, US Bancorp DE increased its stake in Southern Copper by 16.2% in the fourth quarter. US Bancorp DE now owns 74,484 shares of the basic materials company’s stock valued at $10,687,000 after acquiring an additional 10,360 shares during the last quarter. 7.94% of the stock is owned by institutional investors and hedge funds.
Analysts Set New Price Targets Several research firms have weighed in on SCCO. Weiss Ratings cut Southern Copper from a “buy (b)” rating to a “buy (b-)” rating in a research note on Wednesday, July 8th. The Goldman Sachs Group upgraded Southern Copper from a “sell” rating to a “neutral” rating and set a $178.00 price target on the stock in a research note on Friday, April 10th. Zacks Research raised Southern Copper from a “hold” rating to a “strong-buy” rating in a report on Thursday, July 9th. Barclays reissued an “underweight” rating and set a $160.00 price target (up from $148.00) on shares of Southern Copper in a report on Wednesday, July 15th. Finally, UBS Group restated a “sell” rating and set a $160.00 price objective (up from $145.00) on shares of Southern Copper in a research report on Tuesday, June 30th. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, three have given a Hold rating and seven have given a Sell rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Reduce” and an average target price of $148.10.
Get Our Latest Stock Report on SCCO
Southern Copper Stock Up 7.3% Shares of NYSE:SCCO opened at $187.92 on Wednesday. Southern Copper Corporation has a 52-week low of $88.73 and a 52-week high of $223.88. The company has a market capitalization of $155.24 billion, a PE ratio of 31.06, a price-to-earnings-growth ratio of 1.50 and a beta of 1.11. The company has a debt-to-equity ratio of 0.57, a quick ratio of 3.89 and a current ratio of 4.38. The company has a fifty day moving average of $180.76 and a 200-day moving average of $182.80.
Southern Copper’s stock is going to split on Tuesday, August 11th. The 1.012-1 split was recently announced. The newly created shares will be issued to shareholders after the market closes on Monday, August 10th.
Southern Copper Increases Dividend The firm also recently announced a quarterly dividend, which will be paid on Thursday, August 27th. Investors of record on Tuesday, August 11th will be given a dividend of $1.10 per share. The ex-dividend date is Tuesday, August 11th. This represents a $4.40 annualized dividend and a yield of 2.3%. This is a boost from Southern Copper’s previous quarterly dividend of $1.00. Southern Copper’s dividend payout ratio is 72.73%.
Insider Buying and Selling In other Southern Copper news, Director Bonilla Luis Miguel Palomino sold 200 shares of the business’s stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $177.82, for a total transaction of $35,564.00. Following the sale, the director directly owned 1,807 shares of the company’s stock, valued at $321,320.74. The trade was a 9.97% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. In the last 90 days, insiders have sold 404 shares of company stock worth $74,108. 0.07% of the stock is owned by company insiders.
Southern Copper Company Profile (Free Report)
Southern Copper Corporation (NYSE: SCCO) is a large, integrated copper producer whose operations span the full value chain from exploration and mining to smelting, refining and the sale of copper and other metal products. The company produces a range of copper products including copper concentrate and refined cathodes, and recovers valuable byproducts such as molybdenum, silver and zinc. Southern Copper concentrates on high-volume, long-life assets designed to support steady production and processing capabilities.
Southern Copper’s operations are concentrated in Peru and Mexico, where it owns and operates multiple large-scale mining and processing facilities.
Further Reading Five stocks we like better than Southern Copper Confidence Is Back, But Earnings Show the Consumer Is Being Picky AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off 3M’s Redemption Arc: Can Q2 Earnings Change the Narrative? 3 Photonics Companies Making Quantum Tech Possible Want to see what other hedge funds are holding SCCO? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Southern Copper Corporation (NYSE:SCCO – Free Report).
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Key Takeaways AI data center growth could sharply lift copper demand, benefiting major producers like FCX.SCCO is expanding projects in Peru and Mexico to support higher output over the next decade.BHP is increasing exposure to copper and potash while advancing technology and long-life growth projects. Copper prices started 2026 on a strong note, supported by demand from electric vehicles, renewable energy projects, data center growth and grid modernization. At present, data centers account for a mere 1% of global copper demand. However, the astonishing growth of the artificial intelligence (AI)-powered data centers could change the entire landscape dramatically in the near future.
Copper is an essential component of the AI ecosystem including electrical wiring in data centers, power grids, transformers and transmission infrastructure. An AI-led data center consumes 10 times more copper than a conventional data center.
The four major hyperscalers raised their AI capital expenditure budget to $750 billion for 2026. This figure is set to cross $1 trillion next year and is likely to rise further beyond 2027. Moody’s estimated more than $3 trillion in capital investment for AI data centers by these four giant hyperscalers in the next five years.
At this stage, we have narrowed our search to three big copper producers for investment with a long term approach. The companies are: Freeport-McMoRan Inc. (FCX - Free Report) , Southern Copper Corp. (SCCO - Free Report) and BHP Group Ltd. (BHP - Free Report) . Each of these stocks currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The chart below shows the price performance of the three above-mentioned stocks year to date.
Image Source: Zacks Investment Research
Freeport-McMoRan Inc.Freeport-McMoRan is conducting exploration activities near existing mines to expand reserves. It is expected to gain from progress in exploration activities that will boost production capacity.
FCX is executing several smelter projects in Indonesia. FCX is also well-positioned to benefit from automotive electrification, which is a positive for copper, as electric vehicles are copper-intensive. The company's efforts to reduce debt are also encouraging. FCX’s solid financial health also bodes well.
Freeport-McMoRan has an expected revenue and earnings growth rate of 9.5% and 51.4%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 7.6% in the last 30 days.
Southern Copper Corp.Southern Copper’s investment case is strengthened by its industry-leading copper reserves, expanding project pipeline and favorable long-term demand for copper and key by-products. SCCO is advancing more than $20.5 billion of investments across Peru and Mexico, creating a visible path to higher production over the next decade.
An expected grade recovery, continued progress at Tía María and a tight copper market support an optimistic outlook, with SCCO positioned to deliver sustained growth and attractive shareholder returns.
Southern Copper has an expected revenue and earnings growth rate of 26.6% and 46.6%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 3.9% in the last 30 days.
BHP Group Ltd.BHP Group remains a high-quality diversified miner with leadership in iron ore and growing leverage to copper and potash. Recent updates point to resilient iron ore volumes despite weather disruption, strong execution at Escondida and Copper South Australia, as well as progress on Jansen logistics ahead of production.
BHP’s strategic shift toward future-facing commodities like copper and potash positions it well to benefit from global decarbonization and trends. Strong cash generation, efforts to lower debt and portfolio actions support funding flexibility.
BHP’s technology partnerships in haulage, conveyors, copper leaching and renewable energy support efficiency, safety and decarbonization efforts. BHP’s low-cost iron ore base, an expanding copper pipeline and long-life Jansen potash project provide durable growth avenues.
BHP Group has an expected revenue and earnings growth rate of 12.6% and 43.7%, respectively, for the current year (ending June 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 1.2% in the last 60 days.
In the latest close session, Southern Copper (SCCO - Free Report) was down 3.24% at $175.66. This move lagged the S&P 500's daily loss of 0.51%. Elsewhere, the Dow saw a downswing of 0.2%, while the tech-heavy Nasdaq depreciated by 1.47%.
The stock of miner has fallen by 5.29% in the past month, leading the Basic Materials sector's loss of 8.52% and undershooting the S&P 500's gain of 0.53%.
Analysts and investors alike will be keeping a close eye on the performance of Southern Copper in its upcoming earnings disclosure. On that day, Southern Copper is projected to report earnings of $1.97 per share, which would represent year-over-year growth of 61.48%. Simultaneously, our latest consensus estimate expects the revenue to be $4.37 billion, showing a 43.28% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.68 per share and revenue of $16.99 billion. These totals would mark changes of +46.56% and +26.62%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Southern Copper. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 5.83% higher within the past month. As of now, Southern Copper holds a Zacks Rank of #3 (Hold).
With respect to valuation, Southern Copper is currently being traded at a Forward P/E ratio of 23.65. This indicates a premium in contrast to its industry's Forward P/E of 23.2.
One should further note that SCCO currently holds a PEG ratio of 1.55. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. SCCO's industry had an average PEG ratio of 1.29 as of yesterday's close.
The Mining - Non Ferrous industry is part of the Basic Materials sector. At present, this industry carries a Zacks Industry Rank of 209, placing it within the bottom 16% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Southern Copper (SCCO - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this miner have returned -5.3% over the past month versus the Zacks S&P 500 composite's +0.5% change. The Zacks Mining - Non Ferrous industry, to which Southern Copper belongs, has lost 9.4% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Southern Copper is expected to post earnings of $1.97 per share, indicating a change of +61.5% from the year-ago quarter. The Zacks Consensus Estimate has changed +6.3% over the last 30 days.
The consensus earnings estimate of $7.68 for the current fiscal year indicates a year-over-year change of +46.6%. This estimate has changed +5.8% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $7.05 indicates a change of -8.2% from what Southern Copper is expected to report a year ago. Over the past month, the estimate has changed +7.6%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Southern Copper is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Southern Copper, the consensus sales estimate of $4.37 billion for the current quarter points to a year-over-year change of +43.3%. The $16.99 billion and $14.88 billion estimates for the current and next fiscal years indicate changes of +26.6% and -12.4%, respectively.
Last Reported Results and Surprise HistorySouthern Copper reported revenues of $4.25 billion in the last reported quarter, representing a year-over-year change of +36.2%. EPS of $1.92 for the same period compares with $1.19 a year ago.
Compared to the Zacks Consensus Estimate of $4.26 billion, the reported revenues represent a surprise of -0.11%. The EPS surprise was +8.47%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Southern Copper is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Southern Copper. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Southern Copper (SCCO - Free Report) Phoenix, AZ-based Southern Copper Corporation engages in mining, exploring, smelting, and refining copper and other minerals. The company conducts exploration activities in Argentina, Chile, Ecuador, Mexico and Peru.
SCCO is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. SCCO has a Growth Style Score of A, forecasting year-over-year earnings growth of 46.6% for the current fiscal year.
Four analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.71 to $7.68 per share. SCCO also boasts an average earnings surprise of +9.1%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, SCCO should be on investors' short list.
Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, July 14:
Alliance Laundry Holdings Inc. (ALH - Free Report) : This commercial laundry systems company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 10.3% over the last 60 days.
Alliance Laundry has a PEG ratio of 1.22 compared with 1.35 for the industry. The company possesses a Growth Score of A.
Southern Copper Corporation (SCCO - Free Report) : This miner of copper and other minerals carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 11.6% over the last 60 days.
Southern Copper has a PEG ratio of 1.54 compared with 1.73 for the industry. The company possesses a Growth Score of B.
National Energy Services Reunited Corp. (NESR - Free Report) : This oilfield services company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 9.8% over the last 60 days.
National Energy Services has a PEG ratio of 0.36 compared with 0.63 for the industry. The company possesses a Growth Score of B.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Learn more about the Growth score and how it is calculated here.
Southern Copper (SCCO - Free Report) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.
The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.
Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.
As such, the Zacks rating upgrade for Southern Copper is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Southern Copper imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for Southern CopperFor the fiscal year ending December 2026, this miner is expected to earn $7.80 per share, which is unchanged compared with the year-ago reported number.
Analysts have been steadily raising their estimates for Southern Copper. Over the past three months, the Zacks Consensus Estimate for the company has increased 12.9%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Southern Copper to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
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Copyright 2026 Zacks Investment Research 101 N Wacker Drive, Floor 15, Chicago, IL 60606
At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +23.94% per year. These returns cover a period from January 1, 1988 through June 1, 2026. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations. Zacks may license the Zacks Mutual Fund rating provided herein to third parties, including but not limited to the issuer.
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Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, July 10:
Alliance Laundry Holdings Inc. (ALH - Free Report) : This commercial laundry systems company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 11.6% over the last 60 days.
Alliance Laundry Holdings has a PEG ratio of 1.23 compared with 1.40 for the industry. The company possesses a Growth Score of A.
Southern Copper Corporation (SCCO - Free Report) : This copper mining company carriesa Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 9% over the last 60 days.
Southern Copper Corporation has a PEG ratio of 1.50 compared with 1.76 for the industry. The company possesses a Growth Score of A.
National Energy Services Reunited Corp. (NESR - Free Report) : This oilfield services company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 9.8% over the last 60 days.
National Energy Services Reunited has a PEG ratio of 0.35 compared with 0.58 for the industry. The company possesses a Growth Score of B.
See the full list of top-ranked stocks here.
Learn more about the Growth score and how it is calculated here.
This page has not been authorized, sponsored, or otherwise approved or endorsed by the companies represented herein. Each of the company logos represented herein are trademarks of Microsoft Corporation; Dow Jones & Company; Nasdaq, Inc.; Forbes Media, LLC; Investor's Business Daily, Inc.; and Morningstar, Inc.
Copyright 2026 Zacks Investment Research 101 N Wacker Drive, Floor 15, Chicago, IL 60606
At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +23.94% per year. These returns cover a period from January 1, 1988 through June 1, 2026. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations. Zacks may license the Zacks Mutual Fund rating provided herein to third parties, including but not limited to the issuer.
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Southern Copper (SCCO - Free Report) closed the most recent trading day at $167.21, moving -1.5% from the previous trading session. This change lagged the S&P 500's 0.28% loss on the day. Elsewhere, the Dow lost 1.09%, while the tech-heavy Nasdaq added 0.2%.
Heading into today, shares of the miner had lost 3.09% over the past month, lagging the Basic Materials sector's loss of 3.01% and the S&P 500's gain of 1.64%.
Analysts and investors alike will be keeping a close eye on the performance of Southern Copper in its upcoming earnings disclosure. In that report, analysts expect Southern Copper to post earnings of $1.9 per share. This would mark year-over-year growth of 55.74%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.26 billion, up 39.64% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.62 per share and revenue of $16.69 billion, indicating changes of +45.42% and +24.4%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Southern Copper. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 5% higher. As of now, Southern Copper holds a Zacks Rank of #3 (Hold).
Investors should also note Southern Copper's current valuation metrics, including its Forward P/E ratio of 22.29. This denotes a discount relative to the industry average Forward P/E of 22.58.
It is also worth noting that SCCO currently has a PEG ratio of 1.52. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Mining - Non Ferrous industry currently had an average PEG ratio of 1.29 as of yesterday's close.
The Mining - Non Ferrous industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 169, positioning it in the bottom 32% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
The U.S. copper industry is valued at around $20 billion, and is one of the key market indicators many market participants watch closely.
Why is that?
Well, copper is heavily used in industry, and the rise or fall of this particular commodity can portend a great deal for where the economy is headed.
However, I think one of the most important numbers that’s also within this sector is negative eleven cents. That is what it cost Southern Copper (NYSE:SCCO | SCCO Price Prediction) to produce a pound of copper in the first quarter of 2026, on a net basis after by-product credits. The largest publicly traded pure-play copper miner reported an operating cash cost of -$0.11 per pound, down from +$0.77 a year earlier.
Southern Copper flagged the swing as a -114% year-over-year improvement in its Q1 2026 release filed April 29, 2026.
What It Means A negative cash cost carries real weight. It means silver, molybdenum, and zinc pulled from the same ore body generated enough revenue to more than cover the full cost of mining, milling, and refining the copper. Southern Copper earned that outcome in a quarter when silver prices ran +157.9% year over year, molybdenum climbed +24.2%, zinc rose +14.0%, and copper itself gained +37.5%. Sales volumes of silver (+11.6%) and zinc (+16.4%) amplified the effect.
The company posted net income of $1.577 billion, up 66.7% year over year, on revenue of $4.251 billion, up 36.2%. Additionally, Southern Copper’s adjusted EBITDA reached $2.71 billion at a 63.8% margin, which supported operating cash flow more than doubling to $1.695 billion. CEO German Larrea called it a “record-breaking quarter” in prepared remarks.
Market Reaction SCCO stock started the year at $144.57 and closed at $172.01 on July 2, 2026, a 23.31% year-to-date gain. Over the trailing twelve months the stock is up 72.32%. Recent action has cooled, evidenced by shares sinking nearly 15% over the past month from a June 2 level of $201.37, giving long-term holders a pullback inside a longer uptrend.
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Bull Case I think Southern Copper’s bull case starts at the cost line and radiates outward. A cash cost below zero means Southern Copper prints cash even if copper retraces from current levels. It also means the company can absorb the operational grind of lower Peruvian ore grades, which pushed Q1 copper output down 4.0% year over year, without ceding margin. That is what a low position on the industry cost curve buys.
The setup extends past one quarter. The Tia Maria project in Peru was 32.5% complete as of Q1, with first production targeted for Q3 2027 and a $1.8 billion budget. Management is committing more than $20.5 billion in capital across the decade to lift output toward 1.6 million tonnes of copper by 2033. Copper itself is providing the tailwind. FRED’s global copper price benchmark reached $13,483.75 per metric ton in May 2026, the top of the 12-month range and the 90.9th percentile of that window.
Holders get paid to wait. The board declared a $1.00 per share cash dividend plus a 0.0100 stock dividend, record date May 13, payable May 29, 2026. Cash and equivalents sat at $4.915 billion at quarter end, with shareholders’ equity up 23.19% year over year.
Sector confirmation runs across the metals complex. Freeport-McMoRan (NYSE:FCX) posted its fourth straight EPS beat with Q1 net income up 154.62% year over year. Newmont (NYSE:NEM) delivered record FY2025 free cash flow of $7.299 billion. MP Materials (NYSE:MP) beat EPS estimates by 182.19% in Q1 with magnetics revenue up 306%. The metals complex is earning its keep.
Bottom Line For a long-term investor, -$0.11 per pound reframes Southern Copper’s risk profile. When the swing metal in the cost structure is a by-product credit, downcycles hurt less and upcycles compound harder. With Tia Maria targeted for Q3 2027 first production and a decade of capital already committed, the next twelve to eighteen months mark the handoff from cost discipline to volume growth.
Keep an eye on copper realizations and Peruvian ore grades in the company’s next earnings report.
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The AI trade everyone talks about is silicon. The AI trade almost nobody talks about is the copper that moves electrons from a substation to a GPU rack, and the Global X Copper Miners ETF (NYSE:COPX) is the cleanest liquid vehicle for owning it. COPX holds the companies digging the stuff out of the ground, and while software valuations stretch over another leg of the buildout, the fund has quietly returned roughly 69% over the past year against about 20% for the S&P 500.
What COPX actually owns and why it matters for AI The fund tracks the Solactive Global Copper Miners index and concentrates in dozens of of large producers. Most of its holdings are foreign companies that directly or indirectly are in the business of mining copper, or at least have decent exposure to it.
The AI link is physical. A single conventional data center requires thousands of tons of copper and megawatts of dedicated power capacity, and the National Electrical Contractors Association told Congress in April that data center energy use could account for 9.1% of all U.S. electricity consumption by the end of the decade.
Every substation, transformer, and foot of high-voltage cable feeding a GPU cluster is copper-intensive. Global copper consumption is expected to move from 26 million tonnes in 2022 toward 43 million tonnes by 2050, driven by AI data centers and electrification.
Does the fund deliver on the thesis? Yes. COPX is up 136% over five years and about 513% over ten, well ahead of the S&P’s 85% and 323% over the same windows. Freeport-McMoRan (NYSE:FCX | FCX Price Prediction), the second-largest U.S. holding, is up roughly 34% over the past year. The biggest U.S. holding is Southern Copper (NYSE:SCCO), up 72% in the past year. The fund pulled in nearly $2 billion in fresh inflows this year, bringing assets to about $7.76 billion.
The 0.65% expense ratio is not cheap next to broad-market ETFs, but no S&P fund gives you this factor. Supply supports the case.
The Democratic Republic of Congo, the world’s second-largest producer, saw Q1 copper exports rise 4.8% and expects little major 2026 output damage from Middle East disruptions. Consolidation is heating up: a South32 asset sale would push copper to roughly 55% of its EBITDA, making it a more obvious takeover target, while BHP’s new CEO inherits the classic copper dilemma of building expensive new mines versus buying existing assets. Miners tend to overpay in that scenario, and COPX owns most of the plausible sellers.
The tradeoffs you actually sign up for Cyclicality is the whole game. COPX is down almost 3% over the past month, a reminder that copper miners crack hard on any whiff of growth wobble. U.S. real GDP swung from 4.4% in mid-2025 to 0.5% in the third quarter to 2.1% into 2026, and copper equities amplify those moves.
Growth sensitivity. If global industrial activity slows, copper miners fall faster than the underlying metal. This fund is a call option on synchronized growth plus the AI capex cycle. Concentration and jurisdiction risk. Half the portfolio sits in five names, and much production comes from Chile, Peru, and the DRC. Permits, royalties, and grid access are political decisions. The technology counterpoint. Jensen Huang argued in June that fiber optics and silicon photonics are becoming increasingly necessary due to the limitations of copper at higher bandwidths. Rack-to-rack interconnects may shift; substation-to-rack copper does not. Who COPX fits and who should skip it COPX fits the profile of a satellite position for investors who already own broad equity index funds and want targeted exposure to the electrification buildout without stock-picking miners. It pairs well against a large software or semiconductor position, capturing the physical bill that the AI story eventually has to pay.
The fund pays little income and swings hard, so it is a poor match for retirees drawing on their portfolio. A 20% drawdown on a bad month of Chinese PMI data is a routine outcome here, which rules it out for anyone who cannot tolerate that volatility. Everyone else gets a genuine picks-and-shovels trade at a fair price, provided they treat it as a cyclical position with a defined exit.
Contact [email protected] for any questions or corrections.
Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Southern Copper (SCCO - Free Report) , which belongs to the Zacks Mining - Non Ferrous industry.
This miner has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 7.66%.
For the most recent quarter, Southern Copper was expected to post earnings of $1.77 per share, but it reported $1.92 per share instead, representing a surprise of 8.47%. For the previous quarter, the consensus estimate was $1.46 per share, while it actually produced $1.56 per share, a surprise of 6.85%.
Price and EPS Surprise
With this earnings history in mind, recent estimates have been moving higher for Southern Copper. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Southern Copper has an Earnings ESP of +2.38% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Gold has surged higher this year, and the trade is getting loud. Goldman Sachs has warned that investors flocking to gold for safety may be making a mistake, arguing the positioning is stretched. The rally is substantial: per Franco-Nevada, gold averaged $4,875 per oz in Q1 2026, up 70.3% year over year, while silver jumped 164.5% to $84.39 an oz. For retirees, that kind of vertical move raises a hard question. If you want the hard-asset hedge without piling into a crowded trade, what else offers income, stability, and diversification?
We ranked three alternatives on the criteria that actually matter in retirement: durable distribution income, lower volatility, diversified exposure, and inflation protection. Only U.S.-listed names were considered.
3. Southern Copper Southern Copper (NYSE:SCCO | SCCO Price Prediction) is the highest-octane name on this list. The Q1 2026 earnings report was strong: EPS of $1.92 beat the $1.81 estimate, revenue of $4.25 billion rose 36.2% year over year, and net income hit $1.58 billion, up 66.7%. The report called it “a record-breaking quarter, with net earnings of $1,576.9 million, which represented a 67% rise compared to 1Q25.”
The stock reflects that leverage. Southern Copper is up 68.1% over the past year, but down 14.6% over the past month. Beta is 1.108, dividend yield is 2.3%, and the trailing P/E is 29x. Payouts swing with copper: quarterly dividends dropped as low as $0.60 in 2024 before recovering to $1.00 in 2026. Analyst sentiment is cautious, and majority ownership by Grupo Mexico adds concentration risk. So, it is a great commodity vehicle but a weak retirement-income anchor.
2. Franco-Nevada Franco-Nevada (NYSE:FNV) keeps precious-metals exposure while sidestepping the operating-cost inflation that pinches miners. Q1 2026 was a blowout: adjusted EPS of $2.38 beat by 14.20%, revenue rose 76.6% to $650.7 million, and net income surged 123.4% to $468.6 million. The balance sheet is pristine, with no debt and $3.1 billion in available capital.
CEO Paul Brink summed up the model: “The sharp rise in oil prices is expected to positively impact our Q2 revenues, while our royalty and streaming model is largely insulated from the impact of energy prices on cost inflation. Franco-Nevada is unique as a mining equity that benefits from rising oil prices.” The dividend was raised from $0.38 to $0.44 in Q1 2026, extending a long streak of annual increases. Beta is a modest 0.889, shares are up 32.3% over the past year, and the analyst consensus target of $291.52 compares with a current price of $217.58. The yield is thin at 0.8%, which keeps this one shy of the top spot for income-focused retirees.
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1. Brookfield Infrastructure Partners Brookfield Infrastructure Partners (NYSE:BIP) wins on the criteria that count most for retirees: yield, diversification, and cash-flow durability. The partnership owns utilities, transport, midstream energy, and data infrastructure across North and South America, Europe, and Asia Pacific, with regulated and contracted revenue that provides an inflation-linked income stream.
The current dividend yield is 4.9%, dwarfing both peers. Distributions have climbed steadily, from $0.265 quarterly in 2008 to $0.455 for 2026. Beta is 1.031, shares are up 9.5% over the past year and 102.2% over 10 years, and analyst sentiment is positive with a $44.18 target price. Q2 2026 results are scheduled for July 30, 2026, giving investors a near-term catalyst.
One caveat: Brookfield Infrastructure Partners is a limited partnership that issues a K-1, a real complication for tax-advantaged retirement accounts. Investors who want the identical strategy in a corporate wrapper have a sister vehicle to consider: Brookfield Infrastructure (NYSE:BIPC). But the core cash flow story remains the same here.
Bringing It Together The gold rally may have further to run, or it may not. Either way, retirees who want ballast without piling into a crowded trade have options with better income profiles. Southern Copper offers commodity torque with dividend volatility to match. Franco-Nevada delivers precious-metals exposure through a cleaner, capital-light royalty model. Brookfield Infrastructure Partners tops the ranking because its regulated and contracted cash flows produce a yield near 5% that has grown for nearly two decades, exactly the profile that a retirement-focused portfolio is built to reward.
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On June 30, 2026, Southern Copper Corp (SCCO) shares rose 3.5% to a current price of $174.26. This move comes amid a 52-week range that has seen a high of $221.
The United States Oil Fund (NYSEARCA:USO) does one thing: it gives investors a liquid way to bet on West Texas Intermediate crude without opening a futures account. That utility is real, which is why USO still attracts capital every time a Middle East headline crosses the wire. Holders are paying for directional crude exposure, and on a year-to-date basis, USO has delivered, returning 60.89% through June 23 as WTI swung from $55.44 in December 2025 to a $114.58 peak in April 2026. The question is whether crude is still the right commodity to own when the structural demand story has shifted to another metal.
Where USO Underperforms Holding front-month WTI futures and rolling them forward exposes shareholders to contango whenever the curve slopes upward. The ETF also issues a K-1 at tax time, which complicates filings for anyone holding it in a taxable account. The bigger issue, though, is the underlying commodity itself. WTI fell 22.3% over the past month to $84.65 on June 15, and the 12-month average price sits at $73.15. Crude oil remains a geopolitical instrument at this point, and it is no longer a secular growth trade you can just buy and hold through any environment.
Copper Has Taken Over the Demand Story The Global X Copper Miners ETF (NYSEARCA:COPX) holds 46 copper mining positions and charges a 0.65% expense ratio on $7.71 billion in assets. The one-year total return through June 21 was +108%, though a sharp two-day selloff has trimmed the trailing 12-month figure to 92.29% as of June 23. That is backward-looking and reflects a cyclical sector at the top of its range. The structural case sits underneath it.
Copper demand is projected to rise materially through 2040, driven by grid buildout, EVs, defense, and AI data centers. The U.S. added copper to the USGS Critical Minerals list. Concentrate markets remain exceptionally tight, with treatment and refining charges compressed sharply this year.
The Operational Leverage USO Cannot Replicate USO captures the spot move in oil minus roll drag. COPX captures the spot move in copper multiplied by miner operating leverage. The first-quarter prints from the fund’s largest holdings illustrate the gap. Southern Copper (NYSE:SCCO | SCCO Price Prediction), a 9.7% weight, posted higher year-over-year revenue and a negative operating cash cost per pound as by-product credits from silver and gold flipped the cost line below zero. Freeport-McMoRan (NYSE:FCX), at 9.9%, reported higher EPS on a stronger realized copper price, with net income rising sharply year over year. Other major holdings showed the same pattern: when realized copper prices step up, miner margins step up faster.
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The trailing dividend for this copper fund is $1.92, which works out to a 2.42% yield on a semi-annual schedule. The oil fund, USO, pays nothing at all.
The Real Tradeoffs COPX is structured as an equity fund that holds mining stocks rather than providing physical or futures-based commodity exposure. Beta sits at 1.07, and the 52-week range of $41.51 to $99.99 shows how violent the swings can be. The fund dropped 11.49% in the past week alone. Holdings carry mine-level operational risk (the Grasberg mud rush still caps Indonesian output) and jurisdictional exposure in Peru, Chile, and the DRC. A China growth scare or a rate shock will hit COPX harder than it will hit a diversified equity ETF.
On the upside, the structural switch from K-1 to 1099 reporting simplifies tax filing, and the underlying exposure shifts from a futures roll to operating businesses that compound retained earnings.
Position Tradeoffs to Consider For someone using the oil fund as a tactical crude bet, a rotation in an IRA would mean exiting that position, redeploying into the copper fund, COPX, and accepting the higher equity beta that comes with it. In a taxable account, the K-1 cost basis needs a thorough review before any sale, and a partial rotation may make more sense than a full one, especially given how extended copper miners look after a doubling. The real decision turns on whether the next decade of commodity demand looks more like grid copper or marginal barrels of oil. The data points to the former, but the caveat is that COPX is already priced for that outcome.
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In the latest trading session, Southern Copper (SCCO - Free Report) closed at $171.26, marking a -1.99% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.05% for the day. Elsewhere, the Dow saw a downswing of 0.09%, while the tech-heavy Nasdaq depreciated by 0.24%.
Shares of the miner have depreciated by 10.34% over the course of the past month, underperforming the Basic Materials sector's loss of 2.52%, and the S&P 500's loss of 1.42%.
The upcoming earnings release of Southern Copper will be of great interest to investors. The company's earnings per share (EPS) are projected to be $1.9, reflecting a 55.74% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.26 billion, up 39.64% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.62 per share and revenue of $16.69 billion. These totals would mark changes of +45.42% and +24.4%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Southern Copper. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 9.96% upward. Southern Copper is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, Southern Copper is at present trading with a Forward P/E ratio of 22.95. This denotes a discount relative to the industry average Forward P/E of 23.75.
One should further note that SCCO currently holds a PEG ratio of 1.57. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Mining - Non Ferrous industry had an average PEG ratio of 1.32.
The Mining - Non Ferrous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 107, which puts it in the top 44% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +24% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Southern Copper (SCCO - Free Report) Phoenix, AZ-based Southern Copper Corporation engages in mining, exploring, smelting, and refining copper and other minerals. The company conducts exploration activities in Argentina, Chile, Ecuador, Mexico and Peru.
SCCO is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. SCCO has a Growth Style Score of A, forecasting year-over-year earnings growth of 45.4% for the current fiscal year.
Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.85 to $7.62 per share. SCCO boasts an average earnings surprise of +9.1%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, SCCO should be on investors' short list.
Southern Copper (SCCO - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this miner have returned -8.5% over the past month versus the Zacks S&P 500 composite's -1.4% change. The Zacks Mining - Non Ferrous industry, to which Southern Copper belongs, has lost 3.6% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Southern Copper is expected to post earnings of $1.90 per share for the current quarter, representing a year-over-year change of +55.7%. Over the last 30 days, the Zacks Consensus Estimate has changed +2.4%.
The consensus earnings estimate of $7.62 for the current fiscal year indicates a year-over-year change of +45.4%. This estimate has changed +10% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $6.96 indicates a change of -8.6% from what Southern Copper is expected to report a year ago. Over the past month, the estimate has changed +6.8%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Southern Copper is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Southern Copper, the consensus sales estimate for the current quarter of $4.26 billion indicates a year-over-year change of +39.6%. For the current and next fiscal years, $16.69 billion and $14.59 billion estimates indicate +24.4% and -12.6% changes, respectively.
Last Reported Results and Surprise HistorySouthern Copper reported revenues of $4.25 billion in the last reported quarter, representing a year-over-year change of +36.2%. EPS of $1.92 for the same period compares with $1.19 a year ago.
Compared to the Zacks Consensus Estimate of $4.26 billion, the reported revenues represent a surprise of -0.11%. The EPS surprise was +8.47%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Southern Copper is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Southern Copper. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
You cannot build a data center without copious amounts of copper -- and that goes double for an artificial intelligence (AI) data center. A traditional data center requires between 5,000 and 15,000 tons of copper, according to the Copper Development Association. AI data centers, by contrast, can need up to 50,000 tons of copper per facility.
An enormous amount of money will be spent on constructing AI data centers over the next decade by cloud computing providers such as Meta Platforms, Amazon, and Alphabet, the parent of Google. They plan to spend some $765 billion this year on AI infrastructure, according to Goldman Sachs, a figure that's expected to increase to more than $1.6 billion by 2031.
As a result of that investment, AI data centers could use half a million tons of copper a year by 2030. That's in addition to all the copper needed for other modes of electrification.
Image source: Getty Images.
The global copper supply gap is poised to widen Yet the supply of new copper is not keeping pace with the feverish growth in demand.
Daniel Yergin, vice chairman of S&P Global, put it this way: "Economic demand, grid expansion, renewable generation, AI computation, digital industries, electric vehicles, and defense are scaling all at once -- and [copper] supply is not on track to keep pace." S&P Global published a study in January predicting that global copper supply will be 24% short of demand by 2040.
That's why the price of copper has jumped 57% over the past five years and 35% over the past 52 weeks. At the moment, I don't see any long-term factors that will keep that price growth contained over the coming decade. So investing in copper right now is a very smart move. I've identified three ways to do it effectively.
Today's Change
(
-6.95
%) $
-4.81
Current Price
$
64.40
Freeport-McMoRan is the world's largest public copper company Freeport-McMoRan (FCX 6.95%) is an American mining company based in Phoenix, Arizona. It operates global mines that produce several metals and elements, including copper, gold, and molybdenum, an element used in steel alloys. And it is the world's largest publicly traded copper-focused company.
The company's assets include the Grasberg minerals district in Indonesia, one of the world's largest copper and gold deposits, and significant operations in the Americas, including the large-scale Morenci minerals district in North America and the Cerro Verde operation in South America.
The stock is up 70% over the past 52 weeks.
Today's Change
(
-5.68
%) $
-10.79
Current Price
$
179.12
Also headquartered in Phoenix, Southern Copper (SCCO 5.68%) operates copper mines in Mexico and Peru, and it's the world's second-largest publicly traded copper company. It also produces molybdenum, zinc, and silver (all of which are also critical to data centers). The company is majority-owned by Grupo Mexico, a Mexican conglomerate involved in mining, transportation, and infrastructure.
The stock has more than doubled in price over the past year.
Finally, there's the Global X Copper Miners ETF (COPX 6.37%). I've been writing about this ETF for months. It provides investors with access to a broad range of copper mining companies. The fund currently has net assets of about $8.2 billion. It holds 41 different copper miner stocks (including Freeport-McMoRan and Southern Copper), with no one stock accounting for more than 6% of the fund.
Today's Change
(
-6.37
%) $
-5.41
Current Price
$
79.48
So if you're looking to diversify your copper investment among a lot of producers, COPX is a great way to do so. The ETF has more than doubled in price over the past year.
The AI data center build-out appears set to continue driving the stock market higher for the foreseeable future. Many companies beyond the cloud compute firms will benefit from it, from electric utilities and construction equipment firms to manufacturers of memory chips. Copper producers, too, should see big gains.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +24% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Southern Copper (SCCO - Free Report) Phoenix, AZ-based Southern Copper Corporation engages in mining, exploring, smelting, and refining copper and other minerals. The company conducts exploration activities in Argentina, Chile, Ecuador, Mexico and Peru.
SCCO is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Basic Materials stock. SCCO has a Momentum Style Score of A, and shares are up 7.4% over the past four weeks.
Four analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.83 to $7.62 per share. SCCO also boasts an average earnings surprise of +9.1%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, SCCO should be on investors' short list.
Southern Copper (SCCO - Free Report) ended the recent trading session at $189.91, demonstrating a -1.57% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.37% for the day. Elsewhere, the Dow gained 0.29%, while the tech-heavy Nasdaq lost 1.33%.
Heading into today, shares of the miner had gained 7.38% over the past month, outpacing the Basic Materials sector's gain of 3.31% and the S&P 500's gain of 2.02%.
The upcoming earnings release of Southern Copper will be of great interest to investors. In that report, analysts expect Southern Copper to post earnings of $1.9 per share. This would mark year-over-year growth of 55.74%. Our most recent consensus estimate is calling for quarterly revenue of $4.23 billion, up 38.73% from the year-ago period.
SCCO's full-year Zacks Consensus Estimates are calling for earnings of $7.62 per share and revenue of $16.54 billion. These results would represent year-over-year changes of +45.42% and +23.22%, respectively.
Any recent changes to analyst estimates for Southern Copper should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 9.96% upward. Southern Copper is currently a Zacks Rank #3 (Hold).
Investors should also note Southern Copper's current valuation metrics, including its Forward P/E ratio of 25.34. For comparison, its industry has an average Forward P/E of 26.09, which means Southern Copper is trading at a discount to the group.
We can also see that SCCO currently has a PEG ratio of 1.73. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Mining - Non Ferrous was holding an average PEG ratio of 1.49 at yesterday's closing price.
The Mining - Non Ferrous industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 169, positioning it in the bottom 31% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Southern Copper (SCCO - Free Report) ended the recent trading session at $193.22, demonstrating a +1.81% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 1.65%. On the other hand, the Dow registered a gain of 0.92%, and the technology-centric Nasdaq increased by 3.07%.
Coming into today, shares of the miner had gained 7.36% in the past month. In that same time, the Basic Materials sector lost 4.3%, while the S&P 500 gained 0.48%.
Analysts and investors alike will be keeping a close eye on the performance of Southern Copper in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.85, showcasing a 51.64% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $4.23 billion, indicating a 38.73% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.25 per share and revenue of $16.54 billion, indicating changes of +38.36% and +23.22%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Southern Copper. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 4.05% rise in the Zacks Consensus EPS estimate. As of now, Southern Copper holds a Zacks Rank of #3 (Hold).
In terms of valuation, Southern Copper is presently being traded at a Forward P/E ratio of 26.17. This expresses a discount compared to the average Forward P/E of 26.42 of its industry.
It's also important to note that SCCO currently trades at a PEG ratio of 1.79. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Mining - Non Ferrous stocks are, on average, holding a PEG ratio of 1.55 based on yesterday's closing prices.
The Mining - Non Ferrous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 186, which puts it in the bottom 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
In the latest trading session, Southern Copper (SCCO - Free Report) closed at $190.76, marking a -1.83% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.24% for the day. Meanwhile, the Dow experienced a drop of 0.01%, and the technology-dominated Nasdaq saw a decrease of 0.26%.
Shares of the miner witnessed a gain of 27.25% over the previous month, beating the performance of the Basic Materials sector with its gain of 6.38%, and the S&P 500's gain of 6.42%.
Investors will be eagerly watching for the performance of Southern Copper in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.77, marking a 48.74% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $4.26 billion, up 36.33% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.79 per share and revenue of $15.51 billion, indicating changes of +29.58% and +15.6%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Southern Copper. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 3.31% higher. Southern Copper currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Southern Copper is presently being traded at a Forward P/E ratio of 28.63. This expresses a premium compared to the average Forward P/E of 28.07 of its industry.
Investors should also note that SCCO has a PEG ratio of 1.96 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. SCCO's industry had an average PEG ratio of 1.51 as of yesterday's close.
The Mining - Non Ferrous industry is part of the Basic Materials sector. At present, this industry carries a Zacks Industry Rank of 156, placing it within the bottom 37% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Southern Copper Corporation (SCCO) has delivered leveraged returns, outperforming copper futures as prices reached record highs into 2026. SCCO shares have risen 855.5% since March 2020, far exceeding copper's 233.7% gain, reflecting strong operational leverage. I maintain a buy rating on SCCO, emphasizing the strategy of accumulating on price weakness despite current record highs.
Abacus FCF Advisors LLC purchased a new position in shares of Southern Copper Corporation (NYSE:SCCO – Free Report) in the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund purchased 52,280 shares of the basic materials company’s stock, valued at approximately $7,501,000.
Several other institutional investors and hedge funds have also made changes to their positions in the business. Vanguard Group Inc. grew its position in shares of Southern Copper by 3.6% in the 4th quarter. Vanguard Group Inc. now owns 983,822 shares of the basic materials company’s stock valued at $141,149,000 after buying an additional 33,804 shares during the last quarter. Sava Infond d.o.o. lifted its position in Southern Copper by 8.9% in the fourth quarter. Sava Infond d.o.o. now owns 24,383 shares of the basic materials company’s stock valued at $3,498,000 after acquiring an additional 1,988 shares during the last quarter. Dunhill Financial LLC grew its holdings in shares of Southern Copper by 26.0% during the fourth quarter. Dunhill Financial LLC now owns 2,174 shares of the basic materials company’s stock worth $312,000 after purchasing an additional 449 shares during the last quarter. Concurrent Investment Advisors LLC purchased a new position in shares of Southern Copper during the fourth quarter worth about $219,000. Finally, Cherokee Insurance Co increased its position in shares of Southern Copper by 0.8% during the fourth quarter. Cherokee Insurance Co now owns 11,968 shares of the basic materials company’s stock worth $1,717,000 after purchasing an additional 100 shares in the last quarter. 7.94% of the stock is owned by institutional investors and hedge funds.
Insider Buying and Selling at Southern Copper In other Southern Copper news, Director Bonilla Luis Miguel Palomino sold 193 shares of the firm’s stock in a transaction on Friday, March 13th. The stock was sold at an average price of $174.60, for a total value of $33,697.80. Following the completion of the sale, the director owned 1,707 shares of the company’s stock, valued at approximately $298,042.20. This trade represents a 10.16% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Lerdo De Tejada Leon Contreras sold 9,326 shares of the business’s stock in a transaction on Tuesday, February 3rd. The stock was sold at an average price of $209.56, for a total transaction of $1,954,344.91. Following the sale, the director owned 605 shares in the company, valued at $126,783.04. The trade was a 93.91% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 9,526 shares of company stock valued at $1,989,373 in the last quarter. 0.07% of the stock is currently owned by company insiders.
Wall Street Analyst Weigh In Several analysts have recently weighed in on the company. The Goldman Sachs Group raised Southern Copper from a “sell” rating to a “neutral” rating and set a $178.00 target price for the company in a report on Friday, April 10th. UBS Group lowered their target price on shares of Southern Copper from $150.00 to $140.00 and set a “sell” rating on the stock in a research report on Friday, March 27th. JPMorgan Chase & Co. lifted their target price on shares of Southern Copper from $117.50 to $127.00 and gave the company an “underweight” rating in a report on Friday, April 10th. Wall Street Zen upgraded shares of Southern Copper from a “hold” rating to a “buy” rating in a research report on Saturday, March 21st. Finally, Morgan Stanley increased their price target on shares of Southern Copper from $155.00 to $160.00 and gave the stock an “underweight” rating in a research note on Thursday, April 9th. Two investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and seven have given a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Reduce” and an average target price of $145.61.
Read Our Latest Research Report on SCCO
Key Southern Copper News Here are the key news stories impacting Southern Copper this week:
Positive Sentiment: Quarterly dividend announced — SCCO declared a $1.00 quarterly dividend (annualized yield ~2.2%). Record date is May 13 and payment date is May 29; that steady cash return is a supportive factor for income-minded investors. Neutral Sentiment: News about a different, similarly named company (Great Southern Copper PLC) raising funds via warrants — not the same issuer as SCCO, so unlikely to materially affect Southern Copper’s fundamentals. Great Southern Copper Raises Funds via Warrant Exercise and Increases Share Capital Negative Sentiment: Leadership uncertainty after the sudden death of the CEO — multiple outlets flag management transition risk and investor concern that the firm faces an earnings/operational test during the change, a direct driver of today’s downside pressure. Why Southern Copper (SCCO) Is Down 5.1% After Sudden CEO Death And Leadership Uncertainty Southern Copper faces earnings test amid leadership transition Negative Sentiment: Unusually large put-option buying — investors purchased ~10,968 put contracts (≈68% above typical put volume), signaling elevated bearish positioning or hedging activity that can amplify downward price moves. Negative Sentiment: Analyst sentiment is weak: SCCO’s consensus is around a “Reduce”/average reduce rating and Scotiabank’s recent note raised its price target to $133 but maintained a “sector underperform” rating (target still well below the current share price), reinforcing downside expectations. Southern Copper Corporation (NYSE:SCCO) Given Average Rating of “Reduce” by Analysts Scotiabank raises price target to $133 (Benzinga) Negative Sentiment: Critical equity research and commentary highlight valuation risk — recent pieces argue SCCO is an expensive copper exposure that cannot afford operational missteps, increasing sensitivity to the current leadership and earnings risk. Southern Copper: An Expensive Copper Story That Cannot Afford A Misstep Southern Copper Stock Down 0.7% Shares of NYSE:SCCO opened at $180.96 on Friday. Southern Copper Corporation has a fifty-two week low of $86.59 and a fifty-two week high of $223.88. The company has a quick ratio of 3.40, a current ratio of 3.89 and a debt-to-equity ratio of 0.61. The firm’s 50-day simple moving average is $185.81 and its 200-day simple moving average is $163.46. The company has a market cap of $148.22 billion, a price-to-earnings ratio of 34.01, a PEG ratio of 1.83 and a beta of 1.16.
Southern Copper shares are going to split on the morning of Wednesday, May 13th. The 1.01-1 split was recently announced. The newly minted shares will be issued to shareholders after the closing bell on Tuesday, May 12th.
Southern Copper (NYSE:SCCO – Get Free Report) last posted its quarterly earnings results on Wednesday, January 28th. The basic materials company reported $1.55 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.54 by $0.01. Southern Copper had a net margin of 32.30% and a return on equity of 41.97%. The firm had revenue of $3.87 billion during the quarter, compared to analysts’ expectations of $3.73 billion. During the same period in the prior year, the company posted $0.98 earnings per share. As a group, equities research analysts predict that Southern Copper Corporation will post 6.79 earnings per share for the current year.
Southern Copper Announces Dividend The firm also recently disclosed a quarterly dividend, which will be paid on Friday, May 29th. Investors of record on Wednesday, May 13th will be issued a dividend of $1.00 per share. This represents a $4.00 dividend on an annualized basis and a yield of 2.2%. The ex-dividend date of this dividend is Wednesday, May 13th. Southern Copper’s dividend payout ratio is currently 75.19%.
About Southern Copper (Free Report)
Southern Copper Corporation (NYSE: SCCO) is a large, integrated copper producer whose operations span the full value chain from exploration and mining to smelting, refining and the sale of copper and other metal products. The company produces a range of copper products including copper concentrate and refined cathodes, and recovers valuable byproducts such as molybdenum, silver and zinc. Southern Copper concentrates on high-volume, long-life assets designed to support steady production and processing capabilities.
Southern Copper’s operations are concentrated in Peru and Mexico, where it owns and operates multiple large-scale mining and processing facilities.
Further Reading Five stocks we like better than Southern Copper
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Shares of Southern Copper Corporation (NYSE: SCCO) are set to split on Wednesday, May 13th. The 1.01-1 split was recently announced. The newly issued shares will be issued to shareholders after the closing bell on Tuesday, May 12th. Southern Copper Stock Up 0.3% Shares of SCCO stock opened at $180.96 on Monday. The
Southern Copper (SCCO - Free Report) came out with quarterly earnings of $1.92 per share, beating the Zacks Consensus Estimate of $1.77 per share. This compares to earnings of $1.19 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +8.48%. A quarter ago, it was expected that this miner would post earnings of $1.46 per share when it actually produced earnings of $1.56, delivering a surprise of +6.85%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Southern Copper, which belongs to the Zacks Mining - Non Ferrous industry, posted revenues of $4.25 billion for the quarter ended March 2026, missing the Zacks Consensus Estimate by 0.11%. This compares to year-ago revenues of $3.12 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Southern Copper shares have added about 18.8% since the beginning of the year versus the S&P 500's gain of 4.3%.
What's Next for Southern Copper?While Southern Copper has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Southern Copper was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.60 on $3.89 billion in revenues for the coming quarter and $6.77 on $15.51 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Mining - Non Ferrous is currently in the top 30% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Energy Fuels (UUUU - Free Report) , is yet to report results for the quarter ended March 2026. The results are expected to be released on May 6.
This uranium and vanadium miner and developer is expected to post quarterly loss of $0.03 per share in its upcoming report, which represents a year-over-year change of +76.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Energy Fuels' revenues are expected to be $33.25 million, up 96.8% from the year-ago quarter.
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What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.93% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Southern Copper (SCCO - Free Report) Phoenix, AZ-based Southern Copper Corporation engages in mining, exploring, smelting, and refining copper and other minerals. The company conducts exploration activities in Argentina, Chile, Ecuador, Mexico and Peru.
SCCO is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. SCCO has a Growth Style Score of B, forecasting year-over-year earnings growth of 29.2% for the current fiscal year.
One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.20 to $6.77 per share. SCCO boasts an average earnings surprise of +9.1%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, SCCO should be on investors' short list.
Southern Copper (SCCO - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this miner have returned -4.5%, compared to the Zacks S&P 500 composite's +11% change. During this period, the Zacks Mining - Non Ferrous industry, which Southern Copper falls in, has gained 1.6%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Southern Copper is expected to post earnings of $1.86 per share, indicating a change of +52.5% from the year-ago quarter. The Zacks Consensus Estimate has changed +19.7% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $6.99 points to a change of +33.4% from the prior year. Over the last 30 days, this estimate has changed +6.4%.
For the next fiscal year, the consensus earnings estimate of $6.59 indicates a change of -5.7% from what Southern Copper is expected to report a year ago. Over the past month, the estimate has changed +5.6%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Southern Copper.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Southern Copper, the consensus sales estimate for the current quarter of $3.89 billion indicates a year-over-year change of +27.4%. For the current and next fiscal years, $16.54 billion and $14.78 billion estimates indicate +23.2% and -10.6% changes, respectively.
Last Reported Results and Surprise HistorySouthern Copper reported revenues of $4.25 billion in the last reported quarter, representing a year-over-year change of +36.2%. EPS of $1.92 for the same period compares with $1.19 a year ago.
Compared to the Zacks Consensus Estimate of $4.26 billion, the reported revenues represent a surprise of -0.11%. The EPS surprise was +8.47%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Southern Copper is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Southern Copper. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
HomeMarketsU.S. & CanadaCommodities CornerCommodities CornerCopper refining now has a Strait of Hormuz problemLast Updated: May 13, 2026 at 6:37 a.m. ET
First Published: May 12, 2026 at 5:43 p.m. ET
Copper futures on Comex settled at a record high of $6.53 a pound on Tuesday. Photo: MarketWatch illustration/iStockphotoA pound of copper now costs more than ever before — and there’s more to the story than just the artificial-intelligence race.
Sulfuric acid, a critical component in copper refining, has been in shorter supply lately because of the Iran war and shipping disruptions in the Strait of Hormuz. China also has placed restrictions on exports of the chemical — and both of those factors are likely increasing copper’s production costs.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
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Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Southern Copper (SCCO - Free Report) Phoenix, AZ-based Southern Copper Corporation engages in mining, exploring, smelting, and refining copper and other minerals. The company conducts exploration activities in Argentina, Chile, Ecuador, Mexico and Peru.
SCCO is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Basic Materials stock. SCCO has a Momentum Style Score of A, and shares are up 1.4% over the past four weeks.
Two analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.42 to $6.99 per share. SCCO also boasts an average earnings surprise of +9.1%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, SCCO should be on investors' short list.
The prospects of the Zacks Mining - Non Ferrous industry remain challenged amid the current volatility in metal prices. Industry players also grapple with inflated costs, labor shortages and supply-chain issues. However, the demand for non-ferrous metals is expected to be supported by the energy-transition trend, which should buoy the industry.
Against this backdrop, we suggest keeping an eye on companies like Southern Copper Corporation (SCCO - Free Report) , Freeport-McMoRan Inc. (FCX - Free Report) and Lundin Mining Corp. (LUNMF - Free Report) . These companies are poised to gain from their endeavors to build reserves and control costs while investing in technology and improving production efficiency.
About the Industry The Zacks Mining - Non Ferrous industry comprises companies that produce non-ferrous metals, including copper, gold, silver, cobalt, molybdenum, zinc, aluminum and uranium. These metals are used by various industries, including aerospace, automotive, packaging, construction, machinery, electronics, transportation, jewelry, chemical and nuclear energy. Mining is a long, complex and capital-intensive process. The actual mining operations are preceded by significant exploration and development to evaluate the size of the deposit. The process is followed by the assessment of ways to extract and process the ores efficiently, safely and responsibly. Miners seek opportunities to grow their reserves and resources through targeted near-mine exploration and business development. They strive to upgrade and improve the quality of their existing assets internally and through acquisitions.
What's Shaping the Future of the Mining - Non Ferrous Industry? Metal Price Swings Cloud Near-Term Outlook: Copper prices started 2026 on a strong note, supported by demand from electric vehicles (EVs), renewable energy projects, data center growth and grid modernization. Meanwhile, disruptions at major global mining operations fueled supply concerns, boosting prices to a high of roughly $6.40 per pound in late January. Prices were mostly volatile during February, largely trading near $6 per pound. Concerns about the impact of surging oil prices on the global economy due to the war in the Middle East dragged down prices to a three-month low of around $5.3 per pound in late March. Prices rebounded in April on hopes of a de-escalation in the Iran war. Copper hit a record high of $6.60 per pound earlier this week, as supply disruptions and booming AI-related infrastructure demand fueled a rally in the metal. However, it has since eased toward $6.5 per pound as traders took profits while reassessing underlying supply and demand conditions. Gold prices have retreated from January 2026 record highs of $5,608.35 an ounce as persistent inflation, a stronger U.S. dollar and expectations of higher-for-longer interest rates weighed on investor sentiment. Gold is currently trading near $4,700 an ounce. Silver, meanwhile, climbed toward $88 an ounce, reaching its highest level in two months and outperforming other precious metals as industrial demand prospects have improved. However, reduced expectations for Federal Reserve rate cuts limited further upside. Uranium futures were above $86.50 per pound, near their highest level in two months, on optimism surrounding long-term nuclear power demand.
Labor Shortage, High Costs Remain Worrisome: The industry has been facing a shortage of skilled workforce lately, which has hiked wages. Labor-related disputes can be damaging to production and revenues. Industry players are grappling with escalating production costs, including electricity, water and materials, as well as higher freight expenses and supply-chain issues. Since the industry cannot control the prices of its products, it focuses on improving the sales volume, increasing the operating cash flow and lowering unit net cash costs. Industry participants are opting for alternate energy sources to minimize fuel-price volatility and secure supply. Miners are now committed to cost-reduction strategies and digital innovation to drive operating efficiencies.
Strong Demand to Support the Industry: The demand for non-ferrous metals is expected to remain high in the future, given their wide use in primary sectors, including transportation, electricity, construction, telecommunication, energy and information technology. The surging demand for electric vehicles and renewable energy is expected to be a significant growth driver for metals like copper and nickel in the years to come. The overhauling and upgrading of the nation’s infrastructure and promoting green policies per the U.S. Infrastructure Investment and Jobs Act will also require a huge amount of non-ferrous metals.
Zacks Industry Rank Indicates Bleak Prospects The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates dull prospects for the near term. The Zacks Mining - Non Ferrous industry, a nine-stock group within the broader Zacks Basic Materials Sector, currently carries a Zacks Industry Rank #156, which places it in the bottom 36% of 243 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
Before we present a few stocks that you may want to consider for your portfolio, let us look at the industry’s recent stock-market performance and its valuation picture.
Industry Versus S&P 500 & Sector The Zacks Mining- Non Ferrous Industry has outperformed its sector and the Zacks S&P 500 composite over the past 12 months. The stocks in this industry have collectively gained 93.9% in the past year compared with the Zacks Basic Materials sector’s rise of 49.6%. The S&P 500 has risen 31.2% in the said time frame.
One-Year Price Performance
Industry's Current Valuation Based on the trailing 12-month EV/EBITDA ratio, a commonly used multiple for valuing Mining- Non Ferrous stocks, we see that the industry is currently trading at 14.92X compared with the S&P 500’s 18.59X. The Basic Materials sector’s trailing 12-month EV/EBITDA is 15.31X. This is shown in the charts below.
Enterprise Value/EBITDA (EV/EBITDA) Ratio (TTM)
Enterprise Value/EBITDA (EV/EBITDA) Ratio (TTM)
Over the past three years, the industry has traded as high as 17.79X and as low as 3.95X, the median being 9.24X.
3 Mining - Non Ferrous Stocks to Keep an Eye on Southern Copper: The company has the largest copper reserve in the industry and operates world-class assets in investment-grade countries, such as Mexico and Peru. SCCO expects to produce 915,000 tons of copper in 2026. Southern Copper expected to take this up to roughly 1.6 million tons by 2035, implying a compound annual growth rate (CAGR) of approximately 5.3% from 2025 levels. To support this growth plan, the company intends to invest more than $20.5 billion over the next decade, with the bulk of the capital allocated to projects in Peru. Key growth catalysts include the Tía María, Los Chancas and Michiquillay projects in Peru, along with El Pilar and El Arco in Mexico, all of which underpin SCCO’s long-term expansion pipeline. Given its constant commitment to increasing low-cost production and growth investments, SCCO is well-poised to continue delivering an enhanced performance.
The Zacks Consensus Estimate for the Phoenix, AZ-based company’s fiscal 2026 earnings indicates year-over-year growth of 33.4%. The estimate has moved up 6.4% over the past 60 days. The company has a trailing four-quarter earnings surprise of 9.1%, on average. SCCO has a long-term estimated earnings growth rate of 14.6% and currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Price & Consensus: SCCO
Freeport-McMoRan: The company remains well-positioned for growth, supported by its high-quality copper assets, large reserve base and strong organic expansion opportunities in the United States. Its organic project pipeline contains the Bagdad expansion, Safford/Lone Star Expansions and the Kucing Liar project. FCX is also deploying the latest technologies and data analytics in its leaching processes across its North America and South America operations. Incremental copper production from these initiatives totaled 214 million pounds in 2025. The company is targeting an annual run rate of 300-400 million pounds by 2026/2027 in North America and subsequently 800 mm pounds annually by 2030. In addition, FCX is leveraging automation, new technologies and analytics to enhance operating efficiencies while lowering costs and capital intensity across existing operations and future projects. The company commenced the phased ramp-up of the Grasberg Block Cave underground mine in March 2026, following the temporary suspension of operations following the September 2025 mud rush incident.
The Zacks Consensus Estimate for FCX’s earnings for fiscal 2026 indicates year-over-year growth of 44.6%. The estimate has moved up 0.4% over the past 60 days. FCX has a trailing four-quarter earnings surprise of 32.12%, on average. It has a long-term estimated earnings growth rate of 32.4%. The Phoenix, AZ-based company currently carries a Zacks Rank of 3.
Price & Consensus: FCX
Lundin Mining: The company recently acquired an additional 5% equity interest in SCM Minera Lumina Copper Chile, owner of the Caserones copper-molybdenum mine, along with a 30.9% interest in the Los Helados Project and a 0.62% net smelter return royalty on Los Helados from JX Advanced Metals Corp. and affiliates for a total consideration of $215 million. This acquisition increased LUNMF’s ownership in Caserones to 75%, adding annual attributable copper production of approximately 6,500-7,000 tons, while the 30.9% interest in the Los Helados Project strengthens the company's copper and gold Mineral Resource base and provides compelling long-term growth optionality, including potential synergies with the nearby Caserones operation. With the completion of the sale of the Eagle mine to Talon Metals, it is now a copper-dominant mining company, with approximately 85% of quarterly revenues generated from copper. Results of the technical study for the Vicuña project, which comprises the Filo del Sol deposit and the Josemaria deposit, underscore its potential as a Tier 1 asset with peak annual copper production exceeding 500,000 tons and peak gold production exceeding 800,000 ounces per annum. It is expected to rank among the top five copper, gold and silver mines globally. A sanction decision is expected this year.
The Zacks Consensus Estimate for Vancouver, Canada-based LUNMF’s fiscal 2026 earnings indicates a year-over-year improvement of 51.3%. The estimate has moved up 15% over the past 60 days. It has a long-term estimated earnings growth rate of 17.8%. The company currently carries a Zacks Rank of 3.
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Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
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How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
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For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Southern Copper (SCCO - Free Report) Phoenix, AZ-based Southern Copper Corporation engages in mining, exploring, smelting, and refining copper and other minerals. The company conducts exploration activities in Argentina, Chile, Ecuador, Mexico and Peru.
SCCO is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. SCCO has a Growth Style Score of A, forecasting year-over-year earnings growth of 33% for the current fiscal year.
For fiscal 2026, two analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.40 to $6.97 per share. SCCO boasts an average earnings surprise of +9.1%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, SCCO should be on investors' short list.
Southern Copper (SCCO - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this miner have returned -7.3% over the past month versus the Zacks S&P 500 composite's +4.6% change. The Zacks Mining - Non Ferrous industry, to which Southern Copper belongs, has lost 10.5% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Southern Copper is expected to post earnings of $1.85 per share, indicating a change of +51.6% from the year-ago quarter. The Zacks Consensus Estimate has changed +15.6% over the last 30 days.
The consensus earnings estimate of $6.93 for the current fiscal year indicates a year-over-year change of +32.3%. This estimate has changed +2% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $6.52 indicates a change of -5.9% from what Southern Copper is expected to report a year ago. Over the past month, the estimate has changed -4.1%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Southern Copper.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Southern Copper, the consensus sales estimate for the current quarter of $4.23 billion indicates a year-over-year change of +38.7%. For the current and next fiscal years, $16.54 billion and $14.78 billion estimates indicate +23.2% and -10.6% changes, respectively.
Last Reported Results and Surprise HistorySouthern Copper reported revenues of $4.25 billion in the last reported quarter, representing a year-over-year change of +36.2%. EPS of $1.92 for the same period compares with $1.19 a year ago.
Compared to the Zacks Consensus Estimate of $4.26 billion, the reported revenues represent a surprise of -0.11%. The EPS surprise was +8.47%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Southern Copper is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Southern Copper. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Key Takeaways FCX's expansion projects aim to boost copper output, backed by a strong financial health.SCCO plans $20.5B in investments to lift output to 1.6M tons, but faces near-term declines.Both companies balance dividends, cash flow and investments amid market volatility. Freeport-McMoRan Inc. (FCX - Free Report) and Southern Copper Corporation (SCCO - Free Report) are two heavyweights in the copper mining industry. Both operate on a global scale, extracting and processing copper and other metals. Also, both are navigating fluctuating copper prices and global economic uncertainties.
Copper prices started 2026 on a strong note, underpinned by robust demand from China and the United States. Structural tailwinds, including electric vehicles (EVs), renewable energy projects, data center growth and grid modernization, continue to boost copper consumption. Worries about tightening supply amid rising EV and infrastructure demand also supported the red metal. These factors led to prices surging to roughly $6.4 per pound in late January. Prices of the red metal were mostly volatile during February, largely trading near $6 per pound.
Copper prices came under pressure in March amid concerns about the impact of surging oil prices on the global economy due to the war in the Middle East, dragging down prices to a three-month low of around $5.3 per pound in late March. Prices rebounded in April on hopes of a de-escalation in the Iran war. Prices shot up to a record high of around $6.6 per pound last week amid robust demand in China and supply worries linked to the Middle East conflict. Prices have pulled back from that level amid war-related uncertainties and are currently hovering near $6.3 per pound.
Let’s dive deep and closely compare the fundamentals of these two copper mining companies to determine which one is a better investment now.
The Case for FreeportFreeport continues to leverage its portfolio of high-quality copper assets, emphasizing disciplined execution and organic growth initiatives to strengthen its production profile. It has completed the evaluation of a large-scale expansion at El Abra in Chile to define a large sulfide resource that could potentially support a major mill project similar to the large-scale concentrator at Cerro Verde, with an estimated resource of approximately 20 billion recoverable pounds of copper.
In Arizona, FCX is progressing with pre-feasibility studies at its Safford/Lone Star operations, with completion targeted for 2026, to assess a sizable sulfide expansion opportunity. It has expansion opportunities at Bagdad in Arizona that can more than double the concentrator capacity of the operation. Technical and economic studies have revealed the potential to build concentrating facilities to boost copper production by 200-250 million pounds annually.
PT Freeport Indonesia (PT-FI) is developing the Kucing Liar ore body within the Grasberg district with a targeted ramp-up to commence in 2030. FCX completed studies in 2025 that showed an opportunity to increase Kucing Liar’s design capacity to 130,000 metric tons of ore per day and reserves by roughly 20% at low costs.
FCX has a strong liquidity profile and generates substantial cash flows, providing ample flexibility to fund expansion projects, reduce debt and enhance shareholder returns. It generated solid operating cash flows of $5.6 billion in 2025. Cash flows provided by operations surged 36% year over year to around $1.5 billion in the first quarter of 2026. Freeport ended the first quarter with strong liquidity, including $3.7 billion in cash and cash equivalents, $3 billion in availability under the FCX revolving credit facility, and $1.5 billion in availability under the PT-FI credit facility.
At the end of the first quarter, Freeport had a net debt of $2.4 billion, excluding PTFI’s new downstream processing facilities. Its net debt is below its targeted range of $3-$4 billion. Freeport has a policy of distributing 50% of the available cash to its shareholders and the balance to either reduce debt or invest in growth projects. FCX has no significant debt maturities until 2027.
FCX offers a dividend yield of roughly 0.5% at the current stock price. Its payout ratio is 14% (a ratio below 60% is a good indicator that the dividend will be sustainable). Backed by strong financial health, the company's dividend is perceived to be safe and reliable.
Despite these positives, Freeport faces headwinds from higher costs. Its outlook for the second quarter of 2026 suggests higher costs on a sequential basis. It expects unit net cash costs to rise to $2.24 per pound, while projecting a full-year average of roughly $1.95 (compared with $1.65 in 2025). The projected second-quarter unit cost reflects a roughly 98% year over year and 17% increase from the prior quarter. The uptick in costs reflects higher costs of energy and other consumables due to the Middle East conflict and persistent pressure on volumes. Higher costs are expected to weigh on the company's margins.
Freeport’s copper sales volumes tumbled approximately 25% year over year in the first quarter to 657 million pounds, and fell from 709 million pounds in the prior quarter. The downside primarily resulted from lower operating rates due to the temporary suspension of operations since the mud rush incident at the Grasberg Block Cave mine in Indonesia in September 2025.
While the company’s outlook for copper sales volumes for the second quarter of 2026 of 690 million pounds indicates a sequential improvement, it still suggests a 32% year-over-year decline. For full-year 2026, consolidated sales volume projections were revised lower to around 3.1 billion pounds of copper from the prior view of 3.4 billion pounds due to an expected delay in achieving full ramp-up of the Grasberg Block Cave mine. Lower sales volumes are expected to weigh on its top line.
The Case for Southern CopperSouthern Copper has a strong pipeline of world-class copper greenfield projects and other promising opportunities. It operates high-quality assets in investment-grade countries such as Mexico and Peru. Backed by its constant commitment to increasing low-cost production and growth investments, the company is well poised to continue delivering enhanced performance.
SCCO holds the largest copper reserves among listed peers. Its low-cost, integrated operations and deep pipeline of world-class greenfield projects further strengthen its competitive positioning. The company is well-positioned to capitalize on the expected surge in copper demand in the year to come, backed by the energy transition trend.
The company continues to build its presence in Peru as the country is the second-largest producer of copper. Peru holds about 9% of the world’s copper reserves. Despite the near-term production headwinds, SCCO expects to produce 915,000 tons of copper in 2026. Southern Copper expected to take this up to roughly 1.6 million tons by the middle of the next decade, implying a compound annual growth rate (CAGR) of approximately 5.3% from 2025 levels. To support this growth plan, the company intends to invest more than $20.5 billion over this decade, with the bulk of the capital allocated to projects in Peru.
The company’s key growth catalysts include the Tía María, Los Chancas and Michiquillay projects in Peru, along with El Pilar and El Arco in Mexico, all of which underpin SCCO’s long-term expansion pipeline.
The Tia Maria project, located in Arequipa, Peru, with an annual capacity of 120,000 tons of SX- EW copper cathodes, is expected to start in 2027. Peru’s Los Chancas project is slated to add 130,000 tons of copper starting in 2031. This will be followed by Michiquillay in 2032, adding an expected 225,000 tons of copper. It is projected to become one of Peru's largest copper mines with an expected mine life of more than 25 years.
In Mexico, the El Pilar project will contribute around 36,000 tons of copper cathodes annually. This project will use highly cost-efficient and environmentally friendly SX-EW technology. El Arco in Baja California is a world-class copper deposit. The project includes an open-pit mine with a combined 120,000 tons per day concentrator and 28,000 tons per year SX-EW operations.
SCCO generated net cash from operating activities of $4.75 billion in 2025, up roughly 7.5% from $4.42 billion in 2024, attributable to higher net income. Net cash from operating activities was around $1.69 billion in the first quarter of 2026, up 135% from $721.4 million in the prior-year quarter, driven by strong cash generation in its operations. SCCO offers a dividend yield of 2.4% at the current stock price. Its payout ratio is 66%, with a five-year annualized dividend growth rate of roughly -2.3%.
However, SCCO faces headwinds from near-term production declines. For 2025, copper production decreased 1.8% to 956,270 tons, which came in 1% lower than the company’s expected 965,000 tons. Lower output at Buenavista and the Peruvian mines, partially offset by a rise in production at IMMSA and La Caridad mines, led to lower output. Its first-quarter output also fell 4% year over year, impacted by lower production at its Peruvian operations (down 10%) due to lower ore grades. While grades are expected to improve later this year, the company's copper production guidance for 2026 implies a decrease of 4.3% from 2025. Lower production is expected to weigh on its performance.
Price Performance and Valuation of FCX & SCCOFCX stock has gained 61.4% over a year, while SCCO stock has rallied 92.5% compared with the Zacks Mining - Non Ferrous industry’s rise of 59.9%.
Image Source: Zacks Investment Research
FCX is currently trading at a forward 12-month earnings multiple of 20.98, modestly higher than its five-year median. This represents a roughly 1.1% premium when stacked up with the industry average of 20.75X.
Image Source: Zacks Investment Research
SCCO is currently trading at a forward 12-month earnings multiple of 25.54, higher than its five-year median and above the industry.
Image Source: Zacks Investment Research
How Does Zacks Consensus Estimate Compare for FCX & SCCO?The Zacks Consensus Estimate for FCX’s 2026 sales and EPS implies a 5.1% and 44.6% increase year over year, respectively. The EPS estimates for 2026 have been trending higher over the past 60 days.
Image Source: Zacks Investment Research
The consensus estimate for SCCO’s 2026 sales and EPS implies year-over-year growth of 23.2% and 33%, respectively. The EPS estimates for 2026 have been going up over the past 60 days.
Image Source: Zacks Investment Research
FCX or SCCO: Which Stock Should You Bet on?Both FCX and SCCO currently have a Zacks Rank #3 (Hold), so picking one stock is not easy. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Both Freeport and Southern Copper are making progress with their growth projects amid a volatile yet favorable copper pricing environment. FCX is poised to gain from progress in its expansion activities that will boost production capacity. However, a weaker sales volume outlook and higher expected unit costs weigh on its prospects. On the other hand, SCCO’s case is backed by its constant commitment to increasing low-cost production and growth investments amid challenges from weaker expected near-term production. FCX’s more attractive valuation and higher earnings growth projections suggest that it may offer better investment prospects in the current market environment.
On May 28, 2026, Southern Copper Corp SCCO shares rose 3.8% to a current price of $194.88. The stock has experienced significant price movements, trading within a 52-week range of $85.51 to $221.67.
GF Value™ verdict: SCCO is currently priced at $194.88, which is 61.2% above its GF Value™ of $120.88, indicating it is overvalued.GF Score™: SCCO has a strong GF Score™ of 89/100, suggesting solid long-term performance potential.Most notable signal: Insider activity shows that insiders sold $1.1 million in shares over the last three months, with no purchases reported. Is SCCO Overvalued or Undervalued? Southern Copper Corp SCCO is currently trading at $194.88, while the GF Value™ estimates its fair value at $120.88. This substantial difference represents a 61.2% overvaluation, indicating that the stock may not provide a margin of safety for potential investors. The GF Valuation label classifies SCCO as significantly overvalued, which poses a risk for investors considering entry at current price levels. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
Given the current price's significant premium over its GF Value™, potential investors might want to exercise caution. The overvaluation suggests that the stock price may be influenced by speculation or market trends rather than underlying fundamentals. Consequently, the risk of a price correction appears elevated, as the stock may struggle to maintain its high valuation in the face of market realities.
How Does SCCO's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 33.0x 21.6x Forward P/E 28.0x - Currently, SCCO's P/E (TTM) stands at 33.0x, which is 52% above its 5-year median P/E of 21.6x. The forward P/E is slightly lower at 28.0x, but still indicates a premium valuation compared to historical levels. This P/E analysis aligns with the GF Value™ verdict, reinforcing the conclusion that SCCO is overvalued relative to its historical valuation metrics.
What Does SCCO's GF Score™ Tell Us? Metric Rating GF Score™ 89/100 Financial Strength 7/10 Profitability 10/10 Growth 9/10 Valuation 3/10 Momentum 6/10 The GF Score™ of 89/100 indicates strong potential for Southern Copper Corp in terms of long-term returns. The highest score of 10/10 in profitability highlights SCCO's ability to generate robust profits, while the growth rank of 9/10 suggests that the company has solid growth prospects. However, the valuation rank of 3/10 is a notable weak point, aligning with the overvaluation indicated by the GF Value™ assessment. Overall, while SCCO exhibits strong fundamentals in profitability and growth, its valuation presents a concern for prospective investors.
What Are Insiders Doing with SCCO Stock? Recent insider activity at Southern Copper Corp reveals that insiders have sold $1.1 million worth of shares over the last three months, with no buying activity reported. This selling trend may suggest a lack of confidence among insiders regarding the stock's current valuation or future price performance. When insiders are selling, it can often be viewed as a cautionary signal for potential investors, indicating that those closest to the company may believe the stock price is unlikely to rise further.
What This Means for Investors Based on the GF Value™ assessment, Southern Copper Corp SCCO is currently overvalued. With a significant premium over its intrinsic value and concerning insider selling, potential investors may want to approach this stock with caution.
For the complete analysis, visit the Southern Copper Corp SCCO stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is SCCO's GF Score™?
SCCO has a GF Score™ of 89/100, indicating strong potential for long-term returns based on its financial strength, profitability, and growth.
Is SCCO overvalued or undervalued?
According to the GF Value™ assessment, SCCO is currently overvalued by 61.2%, with a current price of $194.88 compared to its GF Value™ of $120.88.
What is SCCO's P/E ratio?
The current P/E (TTM) for SCCO is 33.0x, which is 52% above its 5-year median P/E of 21.6x, indicating it is trading at a premium compared to its historical valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
On June 02, 2026, we delve into the DCF analysis for Southern Copper Corp SCCO , a company that has shown impressive price performance recently. Over the past year, SCCO's stock has surged by 127.8%, and year-to-date, it has gained 39.6%. As investors evaluate the stock's current valuation, it is essential to consider the following:
DCF Earnings-based intrinsic value of $192.37 compared to the current price of $194.62 (margin of safety: -5.3%) DCF FCF-based intrinsic value of $69.45, indicating a second opinion on valuation GF Score™ of 89/100, suggesting high reliability of the DCF inputs What Is SCCO Worth? DCF Earnings-Based Model The DCF earnings-based model for Southern Copper Corp SCCO utilizes a two-stage approach to estimate the intrinsic value of the stock. The first stage accounts for a high growth rate over the next ten years, while the second stage reflects a more stable growth rate in the terminal phase. Below are the key assumptions used in this model:
Parameter Value Current EPS (TTM, excl. non-recurring) $5.91 10-Year Growth Rate 20.6% 10-Year Treasury Rate 4.43% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% In the first stage, we project the EPS to grow at 20.6% per year for the next ten years, discounted at a rate of 11%. This results in a Growth Stage Value of $95.98 per share. In the second stage, after year ten, we assume a terminal growth rate of 4% for another ten years, also discounted at 11%, leading to a Terminal Stage Value of $96.39 per share. The summary of the calculations is as follows:
Stage Description Value Growth Stage (Years 1-10) EPS growing at 20.6%, discounted at 11% $95.98 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $96.39 Intrinsic Value Growth + Terminal $192.37 Comparing the current price of $194.62 with the intrinsic value of $192.37 indicates that the stock is fairly valued, with a margin of safety of -5.3%. It is important to note that GuruFocus uses EPS excluding non-recurring items, as research shows stock prices correlate more closely with earnings than with free cash flow. For further analysis, you can visit the SCCO DCF Calculator.
What Does the Free Cash Flow DCF Say? The alternative DCF model based on Free Cash Flow (FCF) yields an intrinsic value of $69.45. This starkly contrasts with the earnings-based intrinsic value of $192.37, indicating a significant discrepancy between the two valuation methods. The FCF-based model suggests that SCCO is significantly overvalued, with a margin of safety of -180.2%.
How Does GF Value™ Compare to the DCF Models? In addition to the DCF models, the GF Value™ for Southern Copper Corp is calculated at $121.28. This proprietary measure takes into account historical trading multiples, past business growth, and future performance estimates. When considering all three valuation perspectives, we observe that the DCF earnings-based model suggests fair valuation, while the FCF model indicates significant overvaluation, and the GF Value™ suggests that the stock is overvalued as well. For more details, visit the GF Value™ page.
What Does SCCO's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been found to generate higher long-term returns (backtested 2006-2021). Below is a summary of SCCO's GF Score™ metrics:
Metric Rating GF Score™ 89/100 Financial Strength 7/10 Profitability 10/10 Growth 9/10 Valuation 3/10 Momentum 6/10 With a predictability rank of 2 out of 5 stars, it suggests that the DCF model may be less reliable for this stock. For more information, visit the SCCO stock page.
Key Assumptions and Limitations It is important to note that DCF models are highly sensitive to growth rate and discount rate assumptions. Stocks with low predictability ratings, such as SCCO, produce less reliable DCF estimates. Additionally, the terminal growth rate of 4% is a simplifying assumption that may not reflect future realities.
What This Means for Investors Considering the three valuation models—DCF earnings, DCF FCF, and GF Value™—the consensus indicates that Southern Copper Corp is currently overvalued. The DCF earnings model suggests fair valuation, while the FCF model and GF Value™ both indicate significant overvaluation.
For the full DCF analysis, visit the SCCO DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.
Frequently Asked Questions What is SCCO's intrinsic value based on DCF?
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
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What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
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Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
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How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.7% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
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That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
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Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Southern Copper (SCCO - Free Report) Phoenix, AZ-based Southern Copper Corporation engages in mining, exploring, smelting, and refining copper and other minerals. The company conducts exploration activities in Argentina, Chile, Ecuador, Mexico and Peru.
SCCO is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Basic Materials stock. SCCO has a Momentum Style Score of B, and shares are up 6.9% over the past four weeks.
Three analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.68 to $7.25 per share. SCCO also boasts an average earnings surprise of +9.1%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, SCCO should be on investors' short list.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Southern Copper (SCCO - Free Report) Phoenix, AZ-based Southern Copper Corporation engages in mining, exploring, smelting, and refining copper and other minerals. The company conducts exploration activities in Argentina, Chile, Ecuador, Mexico and Peru.
SCCO is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. SCCO has a Growth Style Score of A, forecasting year-over-year earnings growth of 38.4% for the current fiscal year.
For fiscal 2026, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.68 to $7.25 per share. SCCO boasts an average earnings surprise of +9.1%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, SCCO should be on investors' short list.
In the latest trading session, Southern Copper (SCCO - Free Report) closed at $167.76, marking a -4.23% move from the previous day. This move lagged the S&P 500's daily loss of 1.62%. Elsewhere, the Dow saw a downswing of 1.87%, while the tech-heavy Nasdaq depreciated by 1.98%.
Coming into today, shares of the miner had lost 8.65% in the past month. In that same time, the Basic Materials sector lost 5.57%, while the S&P 500 lost 0.03%.
Analysts and investors alike will be keeping a close eye on the performance of Southern Copper in its upcoming earnings disclosure. The company is expected to report EPS of $1.85, up 51.64% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.23 billion, up 38.73% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.25 per share and a revenue of $16.54 billion, signifying shifts of +38.36% and +23.22%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Southern Copper. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 3.79% rise in the Zacks Consensus EPS estimate. Southern Copper is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Southern Copper has a Forward P/E ratio of 24.15 right now. This expresses a discount compared to the average Forward P/E of 24.6 of its industry.
It's also important to note that SCCO currently trades at a PEG ratio of 1.65. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Mining - Non Ferrous stocks are, on average, holding a PEG ratio of 1.47 based on yesterday's closing prices.
The Mining - Non Ferrous industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 186, finds itself in the bottom 24% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
