Top Copper Stocks for Q2 2020

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The copper industry is comprised of companies involved in the exploration, extraction, development, and production of copper, one of the most widely used metals today. Copper is used for a broad range of applications in electronics, construction, power generation, and transmission. Some of the big names in the sector include China-based Zijin Mining Group Co. Ltd., Freeport-McMoRan Inc. (FCX), and U.K.-based KAZ Minerals Plc. Copper stocks, as represented by the Global X Copper Miners ETF (COPX), have dramatically underperformed the broader market in the last 12 months, with total returns of -52.7% as compared to the S&P 500’s return of -17.6%.

Here are the top 3 copper stocks with the best value, the fastest earnings growth, and the most momentum. All figures in this story are as of March 23, 2020.

Best Value Copper Stocks

These are the copper stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows you’re paying less for each dollar of profit generated.

Best Value Copper Stocks
  Price ($) Market Cap ($B) 12-Month Trailing P/E Ratio
Ero Copper Corp. (ERO.TO) CA$10.98 CA$0.9 8.1
Southern Copper Corp. (SCCO) 25.41 19.6 13.2
Lundin Mining Corp. (LUN.TO) CA$4.4 CA$3.2 14.5
  • Ero Copper Corp.: Ero Copper is a Canada-based mining company that engages in the production and sale of copper, gold, and silver in mining locations primarily in Brazil. In FY 2019, Ero Copper produced more than 42,000 tons of copper, a year-over-year (YOY) increase of 39% at its Curaçá Valley operations in Brazil.
  • Southern Copper Corp.: Southern Copper is engaged in the exploration, development, and production of copper. In the process, the company also obtains several by-products including molybdenum, silver, zinc, sulfuric acid and other metals.
  • Lundin Mining Corp.: Lundin Mining is a Canada-based diversified company engaged in the exploration, development, and mining of mineral properties, producing primarily copper, zinc, gold, and nickel. In February, Lundin Mining announced a 33% increase in its cash dividend, payable on April 8.

Fastest Growing Copper Stocks

These are the copper stocks with the highest year-over-year EPS growth for the most recent quarter. Rising earnings show that a company’s business is growing and is generating more money that it can reinvest or return to shareholders.

Fastest Growing Copper Stocks
  Price ($) Market Cap ($B) EPS Growth (%)
Ero Copper Corp. (ERO.TO) CA$10.98 CA$0.9 284.0
Lundin Mining Corp. (LUN.TO) CA$4.40 CA$3.2 224.5
Turquoise Hill Resources Ltd. (TRQ.TO) CA$0.52 CA$1.0 34.7
  • Ero Copper Corp.: See above for company description
  • Lundin Mining Corp.: See above for company description.
  • Turquoise Hill Resources Ltd.: Turquoise Hill Resources is a Canada-based mining company engaged in the exploration and development of mineral and metal properties. The company conducts copper and gold mining operations at the Oyu Tolgoi mine in southern Mongolia.

Copper Stocks with the Most Momentum

These are the copper stocks that had the highest total returns the last 12 months. Notably, all three of these stocks had negative total returns, but as the market has dropped substantially, these three stocks have fallen the least among copper stocks.

Copper Stocks with the Most Momentum
  Price ($) Market Cap ($B) 12-Month Trailing Price Change (%)
Lundin Mining Corp. (LUN.TO) CA$4.40 CA$3.2 -30.7
Southern Copper Corp. (SCCO) 25.41 19.6 -32.0
Ero Copper Corp. (ERO.TO) CA$10.98 CA$0.9 -32.3
S&P 500 N/A N/A -17.6
Global X Copper Miners ETF (COPX) N/A N/A -52.7
  • Lundin Mining Corp.: See above for company description.
  • Southern Copper Corp.: See above for company description.
  • Ero Copper Corp.: See above for company description.

Source: Investopedia

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