Company Overview - Southern Copper Corporation (NYSE:SCCO) is engaged in mining, smelting, and refining copper, and also processes other materials such as molybdenum, zinc, silver, gold, and sulfuric acid [2]. Stock Performance - The stock has experienced a significant increase, being up 25% this year and showing a parabolic move with a recent increase of $5 in a single day [1]. - The current yield of the stock is 1.98%, which is considered low given its recent performance [1]. Analyst Insights - Wells Fargo has raised the price target for Southern Copper's stock from $144 to $182 while maintaining an Equal-Weight rating, indicating a cautious outlook on the stock's future performance [2]. - The firm anticipates strong performance in copper and aluminum in 2026 due to limited new supply in the first half of the year, alongside expectations that tariffs on steel and aluminum imports will remain in place, keeping US prices elevated [3]. Investment Considerations - While Southern Copper is recognized for its potential, there are suggestions that certain AI stocks may offer greater upside potential and carry less downside risk, indicating a competitive investment landscape [4].

Group 1: Stock Market Trends - Approximately 18% of S&P 500 stocks have seen a year-to-date increase of 10% or more, doubling the average of 9.4% from the past five years [1] - The technology, financial, and metals mining sectors have seen dozens of stocks rise over 50% in the past year, with the total market capitalization of this "surging stock" group exceeding $4 trillion [1] - Notable examples include Micron Technology, Western Digital, and SanDisk, which have benefited from strong storage demand driven by the AI wave, with related storage stocks rising over 200% in the past year [1] Group 2: Semiconductor and Data Center Demand - The demand for computing power has surged as companies integrate AI agents into software systems, leading to an expansion of data centers and a direct increase in semiconductor demand [2] - Connector manufacturer Amphenol has seen its revenue from data centers rise significantly, with its stock price doubling in the past year [2] - Corning, a materials giant, has experienced an 88% increase in stock price due to rising demand from data center expansions [2] Group 3: Commodity Market Impact - Copper prices have risen approximately 30% in the past year, driven by increased demand from data centers, benefiting mining companies like Southern Copper, whose stock has increased by about 91% [2] - Gold mining stocks have also rebounded strongly, with Newmont Mining and Barrick Mining both doubling in stock price, coinciding with a 66% increase in gold prices [2] Group 4: Financial Sector Performance - Major U.S. investment banks, including Citigroup and Goldman Sachs, have seen stock prices rise over 50% in the past year, driven by expectations of a Fed rate cut and increased credit demand [3] - Regulatory changes, such as relaxed capital and reserve requirements, have boosted bank valuations and facilitated more lending and mergers [3] - The acceleration of merger review processes by the FTC and DOJ has reduced transaction costs and increased certainty in deal completions [3]

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]