Stock of the Day

Southern Copper (SCCO)

$96.42

+$0.35 (+0.4%)

Market Cap: $76.86B

About Southern Copper

Southern Copper Corporation engages in mining, exploring, smelting, and refining copper and other minerals in Peru, Mexico, Argentina, Ecuador, and Chile. The company is involved in the mining, milling, and flotation of copper ore to produce copper and molybdenum concentrates; smelting of copper concentrates to produce blister and anode copper; refining of anode copper to produce copper cathodes; production of molybdenum concentrate and sulfuric acid; production of refined silver, gold, and other materials; and mining and processing of zinc, copper, molybdenum, silver, gold, and lead.

It operates the Toquepala and Cuajone open-pit mines, and a smelter and refinery in Peru; and La Caridad, an open-pit copper mine, as well as a copper ore concentrator, a SX-EW plant, a smelter, refinery, and a rod plant in Mexico. The company also operates Buenavista, an open-pit copper mine, as well as two copper concentrators and two operating SX-EW plants in Mexico. In addition, it operates underground mines that produce zinc, lead, copper, silver, and gold; a coal mine; and a zinc refinery. The company has interests in 156,818 hectares and 502,688 hectares of concessions in Peru and Mexico; and 168,200 hectares and 28,453 hectares of exploration concessions in Argentina and Chile. Southern Copper Corporation was incorporated in 1952 and is based in Phoenix, Arizona. Southern Copper Corporation is a subsidiary of Americas Mining Corporation.

Southern Copper Bull Case

Here are some ways that investors could benefit from investing in Southern Copper Co.:

• The current stock price is around $93.73, reflecting a recent increase, which may indicate positive market sentiment towards the company.
• Southern Copper Co. reported strong quarterly earnings, with an EPS of $1.19, surpassing analysts' expectations, which suggests robust financial health.
• The company has a high return on equity of over 40%, indicating effective management and profitability relative to shareholder equity.
• With a net margin of approximately 29.53%, Southern Copper Co. demonstrates strong profitability, which can be attractive for investors seeking stable returns.
• The recent dividend yield of 2.98% and a payout ratio of 61.27% show that the company is committed to returning value to shareholders, which can be appealing for income-focused investors.

Southern Copper Bear Case

Investors should be bearish about investing in Southern Copper Co. for these reasons:

• Several analysts have downgraded their ratings on the stock, with a consensus rating of "Hold," indicating a lack of strong buy signals in the market.
• Price targets have been adjusted downwards by some analysts, suggesting potential concerns about future performance and market conditions.
• The stock has experienced volatility, with a one-year high of $118.64 and a low of $74.11, which may indicate uncertainty in its price stability.
• With a debt-to-equity ratio of 0.64, while manageable, it suggests that the company has a moderate level of debt, which could pose risks in a rising interest rate environment.
• Market analysts predict a modest EPS of 4.66 for the current fiscal year, which may not meet the expectations of growth-oriented investors.