4-Star Stocks Poised to Pop: Southern Copper

Updated

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 (NYS: SCCO) has earned a respected four-star ranking.

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

Southern Copper facts

Headquarters (founded)

Phoenix (1952)

Market Cap

$25.9 billion

Industry

Copper

Trailing-12-Month Revenue

$6.8 billion

Management

CEO Oscar Rocha (since 2004)
CFO Genaro Mercado (since 2008)

Return on Equity (average, past 3 years)

41.5%

Cash/Debt

$1.4 billion / $2.8 billion

Competitors

Codelco
Freeport-McMoRan Copper & Gold
Rio Tinto

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

On CAPS, 96% of the 4,363 members who have rated Southern Copper believe the stock will outperform the S&P 500 going forward.

A few months ago, one of those Fools, All-Star Schmacko, summed up the Southern Copper bull case for our community:

This stock has been beaten down greatly and I think with copper prices rising again this is a good way to play that trend. The company also averages about a 6-8% annual dividend yield at this price level.

I think the current regime in Peru has also shown that they aren't going to crack down on miners as hard as many people feared which is also a big plus.

Of course, despite its four-star rating, Southern Copper may not be your top choice. If that's the case, we've compiled a special free report for investors called "The Tiny Gold Stock Digging Up Massive Profits," which uncovers a much smaller miner with big potential. The report is 100% free, but it won't be around 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 newTrackPoisedToCAPS account.

At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies 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.

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