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Is Southern Copper Corporation (SCCO) the Best Copper Stock to Buy According to Wall Street Analysts?

Wesley ParkSaturday, Apr 5, 2025 2:25 am ET
2min read

Ladies and gentlemen, let me tell you something: the copper market is ON FIRE! And if you're looking to get in on the action, you need to know which stock is the cream of the crop. Today, we're diving headfirst into the world of copper mining to see if southern copper corporation (SCCO) is the best bet according to Wall Street analysts. So buckle up, because this is going to be a wild ride!

First things first, let's talk about the elephant in the room: profitability. southern copper is crushing it with a net margin of 29.53%, compared to Freeport-McMoRan's measly 7.42%. That's right, folks—Southern Copper is turning revenue into profit like a boss! And if you think that's impressive, wait until you see their return on equity: 40.27%! freeport-mcmoran can't even come close with their 7.50%. This is a no-brainer—Southern Copper is the clear winner when it comes to profitability.

But profitability isn't everything, right? Let's talk earnings. Southern Copper's earnings per share (EPS) is $4.32, while Freeport-McMoRan's is $1.29. That's more than three times the earnings! And their net income? A whopping $3.38 billion compared to Freeport-McMoRan's $1.89 billion. Southern Copper is raking in the cash, and that's something you can't ignore!

Now, let's talk valuation. Southern Copper is trading at a lower price-to-earnings (P/E) ratio of 21.85 compared to Freeport-McMoRan's 29.59. That means Southern Copper is more affordable right now, and investors are willing to pay more for each dollar of sales generated by Southern Copper. This is a clear sign that the market has confidence in Southern Copper's future growth prospects.

But what about dividends? Southern Copper pays an annual dividend of $2.80 per share with a dividend yield of 3.0%, while Freeport-McMoRan pays an annual dividend of $0.30 per share with a dividend yield of 0.8%. Southern Copper is the clear winner here, making it an attractive option for income-focused investors. And with a payout ratio of 64.8%, Southern Copper is committed to returning profits to shareholders through dividends.

Now, let's talk about what the analysts are saying. Freeport-McMoRan has a consensus price target of $52.04, indicating a potential upside of 36.33%. Southern Copper has a consensus price target of $94.42, indicating a potential upside of only 0.01%. But here's the kicker: analysts are more bullish on Freeport-McMoRan despite its lower profitability. Why? Because they believe in its future growth prospects. But let me tell you something—you can't ignore the numbers. Southern Copper is a powerhouse when it comes to profitability, earnings, and valuation.

And let's not forget about institutional ownership. 80.8% of Freeport-McMoRan shares are owned by institutional investors, compared to only 7.9% of Southern Copper shares. This strong institutional ownership in Freeport-McMoRan is an indication that large money managers, endowments, and hedge funds believe that Freeport-McMoRan will outperform the market over the long term. But remember, folks—just because the big guys are in on something doesn't mean it's the best play for you.

So, is Southern Copper Corporation (SCCO) the best copper stock to buy according to Wall Street analysts? The numbers speak for themselves. Southern Copper is crushing it when it comes to profitability, earnings, and valuation. And with a higher dividend yield and payout ratio, it's an attractive option for income-focused investors. But don't just take my word for it—do your own research and make an informed decision. Because in the world of investing, knowledge is power!

So, what are you waiting for? Get in on the action and buy Southern Copper Corporation (SCCO) today! This stock is a no-brainer, and you don't want to miss out on this opportunity. BOO-YAH!

Ask Aime: What is the best copper stock to buy according to Wall Street analysts?

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Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.
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