ZACKS·2026-01-21 14:41Core Insights - Gold and silver experienced significant price increases in 2025, with gold rising over 60% and silver surging over 150%, continuing into 2026 as geopolitical tensions drive investors towards safe-haven assets [1] - Copper is emerging as a key investment opportunity, having risen around 40% in 2025, with expectations for further price increases due to new demand drivers [2][10] Copper Market Dynamics - The demand for copper is being fueled by its essential role in electric vehicles, renewable energy systems, and the AI economy, with massive data centers requiring substantial amounts of copper [5] - China, as the largest copper consumer, is actively securing long-term supplies, contributing to a lasting shortage in the market as demand outpaces supply [6] Investment Opportunities in Copper Stocks - Ero Copper Corp. is positioned well with record production of 16,664 tonnes of copper concentrate at a low cash cost of $2 per pound, and is advancing the Furnas Copper-Gold Project [7][8] - BHP Group Limited is targeting around 2 million tons of copper production per year by the 2030s, with significant investments in expanding operations [11][12] - Rio Tinto is developing major projects like Resolution Copper and Oyu Tolgoi, which is set to be one of the largest copper mines globally by 2030 [14][15] - Southern Copper Corporation holds the largest copper reserves in the industry and has a $15 billion capital investment plan, focusing on major projects in Peru [16][17] Financial Projections - Ero Copper's 2026 sales and EPS are expected to grow by 38% and 100% year-over-year, respectively, with a Zacks Rank of 1 (Strong Buy) [9] - BHP's fiscal 2026 EPS is projected to grow by 23%, also holding a Zacks Rank of 1 [13] - Rio Tinto's 2026 sales and EPS are estimated to grow by 6% each, with a Zacks Rank of 1 [16] - Southern Copper's 2026 sales and EPS are expected to grow by 10% and 18%, respectively, with a Zacks Rank of 2 (Buy) [18]