Core Viewpoint - Southern Copper (SCCO) has shown strong performance in the market, with significant gains in both stock price and expected earnings, indicating positive investor sentiment and potential growth opportunities. Group 1: Stock Performance - Southern Copper closed at $182.97, reflecting a +1.5% increase from the previous trading session, outperforming the S&P 500's gain of 0.26% [1] - Over the past month, shares of Southern Copper have increased by 27.44%, significantly surpassing the Basic Materials sector's gain of 8.62% and the S&P 500's gain of 1.57% [1] Group 2: Earnings Expectations - The upcoming earnings release is anticipated to show an EPS of $1.44, representing a 42.57% increase from the same quarter last year, with expected revenue of $3.62 billion, indicating a 30.11% rise [2] - For the entire year, earnings are forecasted at $5.3 per share and revenue at $13.17 billion, reflecting a +22.4% change in earnings and no change in revenue compared to the previous year [3] Group 3: Analyst Estimates and Rankings - Recent modifications to analyst estimates for Southern Copper suggest a positive outlook for near-term business trends, with positive revisions indicating analysts' confidence in the company's performance [4] - The Zacks Rank system currently rates Southern Copper at 3 (Hold), with a consensus EPS projection that has increased by 1.83% in the past 30 days [6] Group 4: Valuation Metrics - Southern Copper has a Forward P/E ratio of 28.85, which is higher than the industry average Forward P/E of 27.92, indicating a premium valuation [7] - The company has a PEG ratio of 1.51, compared to the Mining - Non Ferrous industry average PEG ratio of 0.74, suggesting that Southern Copper's projected earnings growth is being factored into its valuation [7] Group 5: Industry Context - The Mining - Non Ferrous industry, part of the Basic Materials sector, holds a Zacks Industry Rank of 20, placing it in the top 9% of over 250 industries, indicating strong performance relative to peers [8]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Southern Copper (SCCO) - Southern Copper currently holds a Momentum Style Score of B, indicating a favorable momentum outlook [3] - The company has a Zacks Rank of 2 (Buy), suggesting strong potential for outperformance in the market [4] Performance Metrics - Over the past week, SCCO shares have increased by 14.68%, outperforming the Zacks Mining - Non Ferrous industry, which rose by 8.87% [6] - In a longer timeframe, SCCO's shares have appreciated by 35.89% over the past quarter and 82.89% over the last year, significantly surpassing the S&P 500's gains of 4.96% and 20.67%, respectively [7] Trading Volume - The average 20-day trading volume for SCCO is 1,353,884 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the last two months, two earnings estimates for SCCO have been revised upwards, increasing the consensus estimate from $5.15 to $5.27 [10] - For the next fiscal year, three estimates have also moved higher, with no downward revisions noted [10] Conclusion - Given the positive momentum indicators and earnings outlook, SCCO is positioned as a 2 (Buy) stock with a Momentum Score of B, making it a strong candidate for near-term investment [12]

Core Insights - Significant investments in electrification and data center expansions are expected to highlight the importance of metals and rare earths in 2025 [1] - Copper prices have been rising significantly, with projections indicating that supply deficits will continue to drive prices higher in 2026 [1] Industry Summary - The electrification trend and data center developments are anticipated to create increased demand for metals and rare earths [1] - The ongoing supply deficits in copper are likely to sustain upward pressure on its prices in the near future [1]

Company Overview - Southern Copper (SCCO) shares increased by 6.2% to close at $170.52, with notable trading volume compared to typical sessions, and an overall gain of 8.8% over the past four weeks [1] Copper Market Dynamics - Copper prices have risen by 39.2% over the past year, currently trading near a record high of $6 per pound, driven by tightening supply concerns and expectations of rate cuts and policy easing in China [2] Earnings Expectations - Southern Copper is projected to report quarterly earnings of $1.46 per share, reflecting a year-over-year increase of 44.6%, with revenues expected to reach $3.62 billion, up 30.1% from the previous year [3] - The consensus EPS estimate for Southern Copper has been revised 17.2% higher in the last 30 days, indicating a positive trend that typically correlates with stock price appreciation [4] Industry Context - Southern Copper is part of the Zacks Mining - Non Ferrous industry, which includes First Quantum Minerals (FQVLF), whose shares rose by 4.2% to $28.52, with an 11.5% return over the past month [5]

Group 1 - As of January 7, 2026, two stocks in the materials sector are signaling potential warnings for momentum-focused investors [1] - The Relative Strength Index (RSI) is a key momentum indicator, with values above 70 indicating that a stock may be overbought [2] - Southern Copper Corp (NYSE:SCCO) has an RSI value of 71.4, indicating it may be overbought [5] - Freeport-McMoRan (FCX) has an RSI value of 75.3, also suggesting it may be overbought [5] Group 2 - Southern Copper's stock gained approximately 14% over the past month, reaching a 52-week high of $161.59, and closed at $160.08 [5] - Freeport-McMoRan's stock increased around 25% in the last month, achieving a 52-week high of $57.12, and closed at $56.15 [5] - Analysts have downgraded Southern Copper from Market Perform to Underperform with a price target of $126, while maintaining an Overweight rating for Freeport-McMoRan and raising its price target from $47 to $55 [5]

Group 1 - U.S. copper stocks strengthened on Tuesday, with Freeport-McMoRan (FCX.US) rising over 3%, Southern Copper (SCCO.US) up more than 3%, BHP (BHP.US) increasing by over 1.9%, and Teck Resources (RECK.US) gaining over 3% [1] - The rise in copper stocks is attributed to the historical milestone of London copper futures reaching $13,000 per ton, marking a continuation of the upward trend for this key industrial metal into 2026 [1]

Group 1 - The core viewpoint of the article highlights the strong performance of U.S. copper stocks, with notable increases in share prices for companies such as Freeport-McMoRan Copper & Gold (FCX.US), Southern Copper Corporation (SCCO.US), BHP Group (BHP.US), and Teck Resources (RECK.US) [1] - Freeport-McMoRan Copper & Gold (FCX.US) saw an increase of over 3%, while Southern Copper Corporation (SCCO.US) also rose by more than 3% [1] - BHP Group (BHP.US) experienced a rise of over 1.9%, and Teck Resources (RECK.US) increased by more than 3% [1] Group 2 - The article notes that copper futures in London reached a historic milestone, touching the $13,000 per ton mark for the first time, indicating a continuation of the upward trend for this key industrial metal into 2026 [1]

Group 1 - Southern Copper Corporation (SCCO) experienced a stock price increase of 3.64% on the first trading day of the new year, reflecting positive investor sentiment [1] - The rise in global copper demand, particularly due to the recovery of major economies, has positively impacted the company's earnings outlook [1] - Recent financial reports indicate improvements in production efficiency and cost control, enhancing investor confidence in the company's future prospects [1] Group 2 - Investments in environmental technology and sustainable development have improved the company's image among investors, potentially driving further stock price growth [1] - The expanding application of copper in the renewable energy sector, especially in electric vehicles and renewable energy equipment manufacturing, supports a long-term optimistic outlook for copper demand [1] - Political uncertainties and commodity market volatility have led investors to favor stable investment options like Southern Copper, providing additional support for its stock price [2]

Core Viewpoint - Southern Copper Corporation (SCCO) is establishing a multi-year growth trajectory in copper production, despite a slight decrease in near-term output. The company anticipates copper production to reach 958,800 tons in 2025, a 2% decline from 2024, with expectations to rise to 1,084,000 tons by the end of the decade [1][10]. Production Outlook - From 2031 onwards, copper output is projected to accelerate significantly, reaching approximately 1,536,000 tons by 2034, reflecting a 5% compound annual growth rate (CAGR) from 2024. This growth is supported by a robust project pipeline in Peru and Mexico [2][5]. - The Tia Maria project in Peru, with an annual capacity of 120,000 tons, is expected to commence in 2027, utilizing advanced SX-EW technology [3]. - El Pilar in Mexico is set to start in 2028, contributing around 36,000 tons of copper cathodes annually, also employing cost-efficient SX-EW technology [3]. - By 2030, the El Arco project in Mexico is anticipated to be operational, featuring significant ore reserves and a combined concentrator and SX-EW operation [4]. Project Pipeline - The Los Chancas project in Peru is expected to add 130,000 tons of copper starting in 2031, followed by Michiquillay in 2032, which is projected to produce 225,000 tons and become one of Peru's largest copper mines with a mine life exceeding 25 years [5]. Industry Comparison - Peer BHP Group reported record copper output of 2,017,000 tons for fiscal 2025, an 8% year-over-year increase, and expects production between 1,800,000 and 2,000,000 tons in fiscal 2026 [6][7]. - Teck Resources has entered a merger agreement with Anglo American plc to form Anglo Teck, which will have over 70% exposure to copper and is projected to increase combined annual copper production from 1.2 million tons to 1.35 million tons by 2027 [8]. Financial Performance - Southern Copper shares have increased by 55.9% over the past year, outperforming the industry growth of 42.4% [9]. - The company is trading at a forward 12-month price/sales multiple of 8.84X, significantly higher than the industry average of 3.93X [11]. - The Zacks Consensus Estimate for Southern Copper's 2025 earnings is $5.27 per share, indicating a year-over-year growth of 21.7%, with a projected growth of 17.3% for 2026 [12].

Group 1 - The non-ferrous metal sector experienced a decline on December 31, with significant drops in companies such as Alcoa and Century Aluminum, both falling over 2%, while Kaiser Aluminum and Southern Copper saw declines exceeding 1% [1] - The Chicago Mercantile Exchange raised margin requirements for precious metal futures for the second time this week, aiming to cool down the recently surging precious metals market [1] - As a result of the increased margin requirements, precious metals experienced a substantial drop, with New York silver futures falling over 9% and dropping below $71 per ounce [1]