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Good Stocks To Invest In Now? 3 Copper Stocks To Check Out

Are these the best copper stocks to buy today?

Should Investors Be Buying These Top Copper Stocks Now?

Copper stocks have been on the rise in the stock market in recent years, as the global economy has begun to rebound from the recession. In brief, demand for copper is driven by many factors. Notably, industrial production and construction activity to name a few. Also, copper is used in a variety of applications such as electrical wiring and plumbing. As a result, copper stocks are closely watched by investors as a barometer of economic activity.

The price for copper has and continues to rise among supply chain bottlenecks, dwindling stockpiles, and the ongoing clean energy transition. In fact, investors have many copper stocks to choose from in this space. For example, let’s take a look at BHP Group (NYSE: BHP). This multinational mining firm produces millions of tonnes of copper on an annual basis. Meanwhile, even gold companies like Newmont (NYSE: NEM) are active players in the copper sector as well.

In recent years, copper stocks have been bolstered by strong demand from China. In fact, China is the world’s largest consumer of the metal. However, rising copper prices have also led to increased production costs, which has weighed on margins for copper producers. With that, here are three trending copper stocks to watch in the stock market today.

Copper Stocks To Watch In August 2022

Freeport-McMoran (FCX Stock)

Starting off the list today is, Freeport-McMoran Inc. (FCX). The company is one of the world’s leading producers of copper. Freeport-McMoran mines and smelters are located in North and South America, Asia, and Africa. Additionally, the company’s copper is used in a variety of applications. This includes electrical wiring, roofing, plumbing, and coins. Also, Freeport-McMoran’s products are utilized in many industries. This includes construction, automotive manufacturing, and electronics.

Just last month, the mining company reported its second quarter 2022 financial results. In them, Freeport-McMoran reported weaker-than-expected earnings for the quarter. Specifically, the company reported earnings of $0.58 per share on revenue of $5.4 billion. This is in comparison to the consensus earnings estimate of $0.76 per share, and revenue estimates of $6.5 billion. Also, the company posted a 5.8% drop in revenue on a year-over-year basis. For a sense of scale, in this quarter the company totaled 1.1 billion pounds of copper, 476 thousand ounces of gold and 20 million pounds of molybdenum.

Richard C. Adkerson, Chairman, and Chief Executive Officer, commented in his letter to shareholders, “FCX is in a position of strength as we navigate the current global market uncertainties. The actions we have taken in recent years to build a strong balance sheet, successfully expand low-cost operations, and maintain flexible growth options will allow us to manage the current market situation in an effective manner while preserving substantial future asset values. Despite near-term uncertainties, the long-term market fundamentals and value opportunities for our stakeholders remain extraordinarily favorable.” Shares of FCX stock, have recovered over 11% in the last month of trading action. As of Wednesday afternoon, FCX stock currently trades at $30.48. With that, will you be adding FCX stock to your copper stocks watchlist?

Source: TD Ameritrade TOS

[Read More] Top Stock Market News For Today August 17, 2022

Southern Copper Corporation (SCCO Stock)

Next, we have Southern Copper Corporation (SCCO). In brief, Southern Copper Corporation is one of the world’s largest copper producers. The company’s main focus is mining, milling, and smelting of copper, as well as the production of precious metals. Southern Copper has operations in Chile, Peru, Mexico, and the United States. In addition to copper, Southern Copper produces gold, silver, molybdenum, and zinc.

Next, last month, Southern Copper announced weaker-than-expected for its second quarter 2022 financial results. In detail, the company reported earnings per share of $0.56 on revenue of $2.3 billion. Analysts’ estimates for SCCO this quarter were earnings of $0.95 per share. Furthermore, SCCO saw a 20% drop in revenue on a year-over-year basis.

Year-to-date, shares of SCCO stock have fallen over 20%, which could make it an attractive investment for investors right now. As of Wednesday afternoon, shares of SCCO stock are trading at $48.23 a share. Considering this, do you think SCCO is a top copper to watch right now?

Source: TD Ameritrade TOS

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Teck Resources (TECK Stock)

Last but not least, let’s dive into Teck Resources (TECK). Teck Resources Ltd. is a Canadian mining company that produces copper, with operations and projects in Canada, the United States, Chile, and Peru. Teck is Canada’s largest diversified mining company. In detail, Teck’s primary products are copper, zinc, and coal. Teck also owns a majority interest in Teck Cominco Metals Ltd., which produces lead, zinc, and silver.

In July, Teck Resources announced its unaudited second quarter 2022 earning results. Diving in, the company reported Q2 earnings of $2.55 per share on revenue of $4.5 billion. For context, wall street consensus estimates were $2.32 a share, with revenue of $4.2 billion. As a result, TECK reported stronger than expected second-quarter financial results. What’s more, the company was able to notch a 117.8% increase in revenue compared to the same period in 2021. What’s more, the company’s copper business unit gross profit advanced 5% from a year ago, supported by an average realized copper price of US$4.28 per pound and copper sales volumes of 75,800 tonnes. Shares of TECK stock are up over 26% in the last month of trading action. The stock is currently trading at $34.49 on Wednesday afternoon.

This marks Teck’s fourth consecutive quarter of record-setting EBITDA and profitability, driven by strong commodity prices in the quarter, which enabled us to complete $572 million in share buybacks and pay down a further US$650 million in outstanding debt,” stated Don Lindsay, President and CEO. “Our solid operational performance, strong balance sheet and $8.4 billion in liquidity all put Teck on a very strong footing as we manage through inflationary pressures and a slowdown in the global economy.” All in all, is TECK stock on your radar now?

Source: TD Ameritrade TOS

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By Brandon Michael

Brandon Michael is a financial specialist and financial contributor to the stock market. He enjoys writing about rising stocks and how the market changes over time. He specializes in multimedia and events, as well as social media management and media contributing. He has managed and marketed hundreds of events, as well as grown social media pages upwards of 200,000 followers and everything in between. As an active social media influencer in the car community, he understands how to recognize trends and curate content for niches. From an early age, Brandon was fascinated by the power of social media and how it built companies and careers for many. Over time he has developed many different strategies for different platforms on how to grow different kinds of pages. In addition to social media skills, he is passionate about events, it is second nature to him to promote them and make sure that everything is executing perfectly. This has allowed him to partner with some of the largest companies in the industry to run events for hundreds of thousands of people. Brandon has written many articles for many notable top websites for the last 3 years. His focus in his writing is generally rising stocks and emerging trends in the stock market, as well as bringing companies with market potential to the frontlines of the media. It is easy for him to identify trends and do extensive research to make sure he’s providing the most accurate research possible. In his free time, he continues to improve his research skills and financial knowledge to continue providing the best work possible.

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