Why Southern Copper Is Poised to Keep Rallying

Before you go, we thought you'd like these...
Before you go close icon

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, copper giant Southern Copper has earned a respected four-star ranking.

With that in mind, let's take a closer look at Southern Copper and see what CAPS investors are saying about the stock right now.

Southern Copper facts

 

 

Headquarters (founded)

Phoenix, Ariz. (1952)

Market Cap

$34.0 billion

Industry

Diversified metals and mining

Trailing-12-Month Revenue

$6.7 billion

Management

CEO Oscar Rocha (since 2004)

CFO Genaro Mercado (since 2008)

Return on Equity (average, past 3 years)

47.7%

Cash/Debt

$2.6 billion/$4.2 billion

Dividend Yield

2.3%

Competitors

BHP Billiton

Freeport-McMoRan

Rio Tinto


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 96% of the 4,317 members who have rated Southern Copper believe the stock will outperform the S&P 500 going forward.

Earlier this week, one of those Fools, niss799, succinctly summed up the Southern Copper bull case for our community:

Copper is one of the primary minerals needed when industrial construction is growing. As this recession starts to give way to a bull market and construction increases copper will once again climb. [Southern Copper] has a dividend of $0.96 with a yield of 2.30%, good revenue and cash on [hand]. Debt is higher than I would like but the investments in equipment, land and processing mandate this.

If you want market-topping returns, you need to put together the best portfolio you can. Of course, despite its four-star rating, Southern Copper may not be your top choice.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2013." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

The article Why Southern Copper Is Poised to Keep Rallying originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool owns shares of Freeport-McMoRan Copper & Gold. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners