Top Copper Stocks to Watch in Q3 2023: Prices and Growth Insights

Southern Copper stands out as the best value pick, while Capstone Copper leads in growth and momentum in 2023

The top copper stocks for Q3 2023 include Capstone Copper Corp., Ero Copper Corp., and Ivanhoe Electric Inc., with some shares soaring up to 153% over the past year.

The copper sector, represented by the Global X Copper Miners ETF (COPX), surged 38% in the last year, outperforming the Russell 1000 Index’s 14% gain. Copper prices experienced significant volatility in 2022, peaking after geopolitical tensions in Eastern Europe before dropping mid-year. Recently, prices have climbed again due to short-term supply constraints and increased investments in green energy technologies.

Below is a breakdown of the top copper stocks categorized by best value, fastest growth, and strongest momentum, focusing on companies engaged in copper mining rather than commodity futures. Data is current as of July 21, 2023.

Best Value Copper Stocks

These stocks feature the lowest 12-month trailing price-to-earnings (P/E) ratios, indicating investors pay less per dollar of profit—often reflecting potential dividend and buyback returns.

• Southern Copper Corp.: Operating mines and metallurgical facilities across Mexico and Peru, with exploration in Argentina, Chile, and Ecuador. Shares have appreciated over 64% in the past year, bolstered by consistent revenue growth in recent quarters.
• Freeport-McMoRan Inc.: A global mining powerhouse with assets in copper, gold, and molybdenum, primarily in the Americas and Indonesia. Shares rose 44% over the year, marking the slowest growth among major copper stocks.
• First Quantum Minerals Ltd.: Canadian miner producing copper concentrates and gold. Despite a nearly one-third drop in revenue year-over-year and reduced sales volumes, it remains a key player. Its shares also trade OTC under ticker FQVLF.

Fastest-Growing Copper Stocks

Ranked by a balanced growth model combining year-over-year revenue and earnings-per-share (EPS) growth, excluding outliers with extreme quarterly changes.

• Capstone Copper: Canadian company operating mainly in the U.S., Mexico, and Chile. Its 2022 merger with Bermudan Mantos Copper Ltd. expanded its portfolio significantly. It posted the highest revenue growth in the latest quarter despite a net loss due to inflation and inventory factors. OTC ticker: CSCCF.
• Southern Copper: Refer to description above.
• Taseko Mines Ltd.: Canadian miner running the Gibraltar mine, the country’s largest open-pit copper operation. Slight revenue decline and flat EPS in the latest quarter, with ownership in the mine increasing to 87.5%. OTC ticker: TGB.

Copper Stocks with the Strongest Momentum

Momentum investing targets stocks showing price gains exceeding the market average, often driven by sustained positive factors and investor interest.

• Capstone Copper: See company details above.
• Ero Copper: Canadian producer operating primarily in Brazil, expanding copper and gold output with plans to double copper production.
• Ivanhoe Electric: Focused on electric metals exploration and renewable energy storage solutions.

Emerging Trends in Copper Stocks

Copper demand is expected to grow steadily due to its essential role in energy transition technologies, including electric vehicles, charging infrastructure, wind turbines, and solar panels. The metal’s price closely tracks global economic health, influenced by its broad use across construction, manufacturing, and electronics sectors. However, advancements in electric vehicle efficiency might moderate copper usage in the future.

Copper prices serve as a leading economic indicator, with rising prices signaling economic strength and declines indicating potential downturns.

Investment Risks in Copper Stocks

Investing in copper stocks involves higher volatility compared to traditional equities and environmental challenges linked to mining practices. Increasing sustainability demands may raise extraction costs and exacerbate supply shortages. For example, in 2020, Rio Tinto PLC faced significant backlash and executive resignations after destroying an Indigenous sacred site, highlighting ESG risks in the industry.

Information presented is for educational purposes and does not constitute investment advice. Readers should conduct their own research or consult professionals before investing.

As of this writing, the author holds no positions in the mentioned stocks.

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