The copper sector plays a pivotal role in the global economy due to copper’s widespread applications in various industries. Known for its excellent conductivity, malleability, and resistance to corrosion, copper is a key material in industries like construction, electrical products, and transportation. As urbanization and infrastructure development continue to expand worldwide, the demand for copper has steadily risen, underscoring its importance to modern society.
Copper stocks represent companies involved in the exploration, mining, smelting, and refining of this valuable metal. Investing in these stocks offers exposure to the underlying value and demand for copper. Given the increasing emphasis on renewable energy and electric vehicles, which heavily utilize copper components, many investors believe that the demand for this metal will continue to grow in the foreseeable future.
However, like all investments, putting money into copper stocks isn’t without risks. Factors like mining costs, geopolitical tensions, and overall global economic health can impact copper prices. Potential investors should therefore consider both the opportunities and challenges presented by the copper market, ensuring they conduct thorough research and understand the dynamics at play before diving into copper stocks. With that in mind, here are two copper stocks to check out in the stock market now.
Copper Stocks To Buy [Or Sell] Now
Southern Copper Corp (SCCO Stock)
First, Southern Copper Corporation (SCCO) is a mining company primarily focused on the extraction, processing, and sale of copper. In addition to copper, the company also produces other valuable by-products like molybdenum, zinc, lead, coal, and silver. Their mining operations span across various regions, ensuring a diversified portfolio of assets.
Last month, Southern Copper announced its second quarter 2023 financial results. Diving in, the company posted earnings of $0.77 cents per share, on operating revenue of $5.7 billion. Additionally, they highlighted the commencement of commercial operations for Plant Vogtle Unit 3, a significant nuclear facility, which now provides over 1,100 megawatts of continuous, carbon-free electricity.
Year-to-date, shares of SCCO stock are up 21.06% so far. Meanwhile, as of Monday’s power hour trading session, SCCO stock is trading flat on the day so far at $74.61 a share.
Freeport-McMoRan Inc. (FCX Stock)
Next, Freeport-McMoRan Inc. (FCX) is a global mining company specializing in the extraction and production of copper, gold, and molybdenum. With operations spanning North and South America, the company is recognized as one of the largest publicly traded copper producers in the world.
Earlier this month, Freeport-McMoRan declared a cash dividend of $0.15 per share on its common stock, set to be paid on November 1, 2023, to shareholders who are recorded as of October 13, 2023. This dividend comprises a base amount of $0.075 and an additional variable dividend of $0.075.
In 2023 thus far, shares of FCX stock have traded modestly lower by 2.22% year-to-date. Meanwhile, during Monday’s power hour trading session, FCX stock is trading slightly lower on the day so far by 0.13% at $37.10 a share.