11 Best Copper Stocks To Invest In According To Analysts

In this article, we discuss 11 best copper stocks to invest in.

Due to the explosive growth in the electrical and electronics, construction, industrial machinery manufacturing, automotive manufacturing, and infrastructure sectors, the copper market is expected to grow from $166.25 billion in 2023 to $179.84 billion in 2024, exhibiting a compound annual growth rate of 8.2%. Similarly, the copper market is projected to reach $240.52 billion in 2028, indicating a CAGR of 7.5% throughout the forecast period of 2024-28. 

Global copper producers experienced strong demand from China in the first half of the year due to decarbonization efforts, countering a weak property market. However, the future outlook depends on Beijing’s stimulus measures. The copper market may shift into a modest, multiyear surplus until 2025, driven by increased mined supply. Similarly, South America’s challenging regulatory and political environments may support the market in the midterm. According to Bloomberg Intelligence, near-term copper prices could dip below $8,000 a ton, with marginal cost support around $7,400. Miners anticipate a significant output increase in the second half of this year, with 2024 showing a potential 4-4.5% growth in mined supply. However, Bloomberg suggests that the benefits of greenfield and brownfield projects may start to diminish from 2027. Regulatory approvals could become more protracted, potentially causing a slowdown in mined copper supply growth by the middle of the decade, leading to market deficits by the end of the decade unless development speeds up.

According to a January 2024 CNBC report, copper prices are projected to surge by over 75% in the next two years due to disruptions in mining supply and increased demand for the metal, particularly driven by the global push for renewable energy. The rise in demand, fueled by the green energy transition, coupled with an expected decline in the US dollar in the latter half of 2024, is expected to contribute to the upward trend in copper prices. Market expectations of potential rate cuts by the US Federal Reserve this year, leading to a weaker dollar, are seen as a factor making US dollar-priced copper more appealing to foreign buyers.

Over 60 countries endorsed a plan at the recent COP28 climate change conference to triple global renewable energy capacity by 2030. Citibank sees this development as highly positive for copper. In a December report, the bank predicted that the increased targets for renewable energy would lead to an additional demand for 4.2 million tons of copper by 2030. This surge in demand could potentially drive copper prices to $15,000 per ton in 2025, surpassing the previous record peak of $10,730 per ton reached in March 2023. Citi analysts project a positive scenario for copper prices, contingent on a very soft economic landing in the US and Europe, an earlier rebound in global growth, and substantial easing measures in China. The analysts also emphasize the importance of ongoing investments in the energy transition sector for this future.

Some of the best copper stocks to buy include Newmont Corporation (NYSE:NEM), Teck Resources Limited (NYSE:TECK), and Freeport-McMoRan Inc. (NYSE:FCX). 

Our Methodology 

We shortlisted the top copper stocks by considering their upside potential, relying on analyst price targets as of February 24. We have assessed the hedge fund sentiment from Insider Monkey’s database of 933 elite hedge funds tracked as of the end of the fourth quarter of 2023. The list is arranged in ascending order of the number of hedge fund holders in each firm. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). 

An aerial view of a copper mine, showing the intricate workings of heavy machinery.

Best Copper Stocks To Invest In According To Analysts

11. Metals Acquisition Limited (NYSE:MTAL)

Number of Hedge Fund Holders: N/A

Average Upside Potential: 15.80%

Metals Acquisition Limited (NYSE:MTAL) is based in Saint Helier, Jersey, with a primary focus on operating and acquiring metals and mining businesses. One of its active operations includes the CSA copper mine located in Cobar, Australia. On October 17, 2023, Metals Acquisition Limited (NYSE:MTAL) announced that it is set to raise approximately $20 million through a private placement financing by selling 1.83 million ordinary shares at a price of $11 per share. The funds generated will be directed towards expediting exploration drilling and mine development at the CSA copper mine. 

Like Newmont Corporation (NYSE:NEM), Teck Resources Limited (NYSE:TECK), and Freeport-McMoRan Inc. (NYSE:FCX), Metals Acquisition Limited (NYSE:MTAL) is one of the best copper stocks to buy.  

10. Taseko Mines Limited (NYSE:TGB)

Number of Hedge Fund Holders: 7

Average Upside Potential: 23.33%

Taseko Mines Limited (NYSE:TGB), a Canadian mining company established in 1966 and headquartered in Vancouver, is engaged in the acquisition, development, and operation of mineral properties. The company explores for various minerals including copper, molybdenum, gold, niobium, and silver. Taseko Mines Limited (NYSE:TGB) is one of the best copper stocks. 

On January 16, Taseko Mines Limited (NYSE:TGB) entered into a $50 million royalty sale agreement with Taurus Mining Royalty Fund, involving 1.95% of the gross revenue from copper sales at its Florence copper project in Arizona. The anticipated proceeds, scheduled for receipt in February, will be used to expedite construction activities at the Florence site, which has so far concentrated on site preparations, earthworks, and civil work for the commercial wellfield.

According to Insider Monkey’s fourth quarter database, 7 hedge funds were long Taseko Mines Limited (NYSE:TGB), compared to 5 funds in the prior quarter. Ric Dillon’s Diamond Hill Capital is the largest stakeholder of the company, with 4.60 million shares worth $6.4 million. 

Diamond Hill Capital made the following comment about Taseko Mines Limited (NYSE:TGB) in its Q4 2022 investor letter:

“We have held Canada-based copper miner Taseko Mines Limited (NYSE:TGB) for its attractive positioning as one of the only small copper miners operating in the US. The combination of low inventories relative to historical levels and still-low copper prices allows Taseko to capitalize on rising copper prices —as they did in Q4. The public comment period for Taseko’s second active mine in Florence, Arizona, also ended successfully in October, and the business capped off the year by announcing an attractive development partnership for Florence, bringing clarity for investors.”

9. Ero Copper Corp. (NYSE:ERO)

Number of Hedge Fund Holders: 10

Average Upside Potential: 9.59%

Ero Copper Corp. (NYSE:ERO) ranks 9th on our list of the best copper stocks. Ero Copper Corp. (NYSE:ERO), based in Vancouver, Canada, is involved in exploring, developing, and producing mining projects in Brazil. The company primarily focuses on the production and sale of copper concentrate, along with gold and silver by-products. 

On November 6, 2023, Ero Copper Corp. (NYSE:ERO) disclosed a deal where underwriters committed to purchasing 8.51 million common shares at $12.35 per share, resulting in gross proceeds of $105 million. Additionally, the underwriters have an option to acquire up to 15% more of the offering. Ero Copper Corp. (NYSE:ERO) intends to utilize the funds to advance growth initiatives at its Tucuma project and Caraíba operations, support regional exploration programs, and cover general corporate and working capital needs. The company anticipates that the Tucuma project in Brazil will contribute 326,000 metric tons of recovered copper over an initial mine life of 12 years, while its Caraíba operations produced 46,371 metric tons of copper concentrate in 2022.

According to Insider Monkey’s fourth quarter database, 10 hedge funds were bullish on Ero Copper Corp. (NYSE:ERO), compared to 7 funds in the last quarter. Thomas E. Claugus’ GMT Capital is the largest stakeholder of the company, with 7.75 million shares worth over $123 million. 

8. Ivanhoe Electric Inc. (NYSE:IE)

Number of Hedge Fund Holders: 15

Average Upside Potential: 95.57%

Ivanhoe Electric Inc. (NYSE:IE) is a Canadian company based in Vancouver. The company specializes in the exploration and development of metals and minerals, with a focus on copper and gold. It offers the Typhoon data acquisition system, a geophysical system known for providing primary signals in its exploration activities. Ivanhoe Electric Inc. (NYSE:IE) is one of the best copper stocks to buy. 

On October 17, 2023, J.P. Morgan assigned an Overweight rating and a price target of $24 to Ivanhoe Electric Inc. (NYSE:IE). JPM stated that Ivanhoe Electric’s valuable Santa Cruz asset, combined with its exclusive exploration technologies, offers a potential pathway to copper production by the end of this decade.

According to Insider Monkey’s fourth quarter database, 15 hedge funds were bullish on Ivanhoe Electric Inc. (NYSE:IE), compared to 12 funds in the prior quarter. 

7. Hudbay Minerals Inc. (NYSE:HBM)

Number of Hedge Fund Holders: 26

Average Upside Potential: 27.14%

Hudbay Minerals Inc. (NYSE:HBM), a diversified mining company based in Toronto, Canada, focuses on exploring, developing, operating, and optimizing properties in North and South America. The company produces copper concentrates containing copper, gold, and silver, as well as zinc concentrates, zinc metal, gold and silver doré, and molybdenum concentrates. It is one of the best copper stocks to invest in. 

On February 23, Hudbay Minerals Inc. (NYSE:HBM) reported a Q4 non-GAAP EPS of $0.20 and a revenue of $602.2 million, outperforming Wall Street estimates by $0.08 and $57.63 million, respectively. In the fourth quarter of 2023, there was robust consolidated copper production of 45,450 tonnes and record-setting consolidated gold production reaching 112,776 ounces. This performance was driven by sustained elevated grades at the Pampacancha deposit in Peru, the Lalor mine in Manitoba, and the added contributions from the recently acquired Copper Mountain mine in British Columbia.

According to Insider Monkey’s fourth quarter database, 26 hedge funds were long Hudbay Minerals Inc. (NYSE:HBM), compared to 29 funds in the earlier quarter. GMT Capital is the biggest stakeholder of the company, with 42 million shares worth $232.6 million. 

6. Rio Tinto Group (NYSE:RIO)

Number of Hedge Fund Holders: 34

Average Upside Potential: 20.49%

Rio Tinto Group (NYSE:RIO) is engaged in the exploration, mining, and processing of mineral resources. It operates through Iron Ore, Aluminium, Copper, and Minerals segments. On February 21, Rio Tinto Group (NYSE:RIO) declared a $2.58 per share final dividend, bringing the total annual dividend to $4.35 per share. The dividend is payable on April 18, to shareholders on record as of March 8. 

According to Insider Monkey’s fourth quarter database, 34 hedge funds were bullish on Rio Tinto Group (NYSE:RIO), compared to 27 funds in the prior quarter. Ken Fisher’s Fisher Asset Management is the leading stakeholder of the company, with 16 million shares worth $1.19 billion. 

In addition to Newmont Corporation (NYSE:NEM), Teck Resources Limited (NYSE:TECK), and Freeport-McMoRan Inc. (NYSE:FCX), Rio Tinto Group (NYSE:RIO) is one of the best copper stocks, ranking 6th on our list. 

HL International Equity Strategy made the following comment about Rio Tinto Group (NYSE:RIO) in its first quarter 2023 investor letter:

“In terms of geographical performance, the eurozone emerged as the top-performing region, and our stocks did better still, fueled by the strong performance of Infineon, L’Oréal, and Schneider Electric. EMs, which lagged the index, were boosted by the improving outlook for semiconductor companies TSMC and Samsung. Mexico’s FEMSA also contributed strongly to relative returns. Europe ex EMU was the weakest region primarily due to the underperformance of SE Banken and UK miner Rio Tinto Group (NYSE:RIO). The latter was affected by concerns over softer iron ore pricing in the current year, another reflection of manufacturing weakness in steelmaking giant China.”

5. Vale S.A. (NYSE:VALE)

Number of Hedge Fund Holders: 34

Average Upside Potential: 35.04%

Vale S.A. (NYSE:VALE) is one of the major producers and sellers of iron ore and iron ore pellets for steelmaking purposes in Brazil and internationally. The company operates in two segments – Iron Solutions, which involves the production of iron ore, pellets, manganese, and other ferrous products; and Energy Transition Materials, which focuses on nickel extraction for stainless steel, electric vehicles, and metal alloys, along with by-products like gold, silver, cobalt, precious metals, platinum, and copper used in the construction sector. It is one of the top copper stocks to watch. 

On February 23, Vale S.A. (NYSE:VALE) reported Q4 adjusted EBITDA of $6.7 billion, a 35% year-over-year and 50% quarter-over-quarter growth attributed to improved operational performance and robust iron ore prices. The board also approved a shareholder payout of approximately $0.55 per share. 

According to Insider Monkey’s fourth quarter database, 34 hedge funds were bullish on Vale S.A. (NYSE:VALE), same as the prior quarter. Ken Fisher’s Fisher Asset Management is the largest stakeholder of the company, with 18.16 million shares worth $288 million. 

Miller Value Partners Income Strategy made the following comment about Vale S.A. (NYSE:VALE) in its second quarter 2023 investor letter:

“Vale S.A. (NYSE:VALE) fell during the quarter with iron ore prices. The company reported 1Q23 revenue of $8.44B, -22.7% Y/Y, below consensus of $8.79B, and Adjusted EBITDA of $3.69B, compared to 1Q22 EBITDA of $6.55B, below consensus of $4.49B. The Brazilian miner produced 66.8 million tons (Mt) of iron ore in 1Q23, +5.8% Y/Y, below consensus of 67.7 Mt, 67.0 thousand tons (kt) of copper, +18.4% Y/Y, and 41.0 kt of nickel, -10.5% Y/Y. Although management reaffirmed its FY23 production guidance, analysts seemed to be concerned by the negatively offsetting impacts of weaker iron ore prices as China, the world’s largest iron ore buyer, has threatened to curb any “unreasonable” price gains for the metal in an effort to prevent this year’s steel output from exceeding 2022 levels. Vale generated 1Q23 free cash flow (FCF) of $2.28B, bringing trailing-twelve month (TTM) FCF to $6.73B, or a FCF yield of 11.3%. The company repurchased $763MM worth of shares in the quarter and paid $1.80B in dividends, bringing total capital returned to shareholders in the quarter to $2.56B, or 4.3% of the company’s market cap.”

4. Barrick Gold Corporation (NYSE:GOLD)

Number of Hedge Fund Holders: 43

Average Upside Potential: 36.70%

Barrick Gold Corporation (NYSE:GOLD) is involved in the exploration, development, production, and sale of gold and copper properties globally. The company also explores and sells silver and energy materials. Founded in 1983, Barrick Gold Corporation (NYSE:GOLD) is headquartered in Toronto, Canada. It is one of the best copper stocks to consider. On February 14, Barrick Gold Corporation (NYSE:GOLD) declared a quarterly dividend of $0.10 per share, in line with previous. The dividend is payable on March 15, to shareholders on record as of February 29. The company also introduced a new $1 billion share repurchase program. The program, spanning the next 12 months, enables Barrick to repurchase its common shares at prevailing market prices. 

According to Insider Monkey’s fourth quarter database, 43 hedge funds were long Barrick Gold Corporation (NYSE:GOLD), compared to 36 funds in the last quarter. Jean-Marie Eveillard’s First Eagle Investment Management is the biggest stakeholder of the company, with 44.6 million shares worth $808.2 million. 

Old West Management made the following comment about Barrick Gold Corporation (NYSE:GOLD) in its Q4 2022 investor letter:

“Barrick Gold Corporation (NYSE:GOLD) is the second largest gold miner in the world, with operations in the U.S., Canada, Africa, South America and more. Barrick is also a major copper producer. Former Goldman Sachs executive John Thornton took control of the company in 2012 and quickly realized he wanted someone with a mining background to run the company. Mark Bristow, at that time CEO of Randgold, was considered one of the best gold mining executives in the world. Thornton wanted Bristow so badly Barrick bought Randgold in 2018. Bristow, who is South African, had extensive experience operating mines throughout Africa, and in fact would fly his own single engine plane to visit mines. He has his PhD in Geology, and he has flourished running Barrick the past five years.

Barrick is estimated to have $1.6 billion of net income this year on $11.5 billion of revenue. Net Income has been growing 15% per year. The stock trades at $19.00 per share which is 16 times forward earnings, and the stock has a 3.15% dividend yield. Barrick has a fortress balance sheet with $5.7 billion in cash and $5 billion of long term debt, which is only one time EBITDA.”

3. Newmont Corporation (NYSE:NEM)

Number of Hedge Fund Holders: 53

Average Upside Potential: 48.27%

Newmont Corporation (NYSE:NEM) is involved in gold production and exploration, along with exploring for copper, silver, zinc, and lead. The company operates in the United States, Canada, Mexico, Dominican Republic, Peru, Suriname, Argentina, Chile, Australia, and Ghana. Newmont Corporation (NYSE:NEM) is one of the best copper stocks to monitor. 

On February 22, Newmont Corporation (NYSE:NEM) reported Q4 non-GAAP earnings per share of $0.50 and a revenue of $4 billion, up 24% on a year-over-year basis. The company produced 5.5 million ounces of gold and 891 thousand gold equivalent ounces from copper, silver, lead, and zinc in Q4 2023. 

According to Insider Monkey’s fourth quarter database, 53 hedge funds were bullish on Newmont Corporation (NYSE:NEM), compared to 49 funds in the prior quarter. Jean-Marie Eveillard’s First Eagle Investment Management is the biggest stakeholder of the company, with 23.75 million shares worth $983.2 million. 

Here is what First Eagle Investments Global Fund has to say about Newmont Corporation (NYSE:NEM) in its Q2 2022 investor letter:

“Shares of Colorado-based Newmont, the largest gold miner in the world, experienced weakness in the quarter as falling gold bullion prices and cost inflation hurt miners in general. More idiosyncratically, the company reported slightly disappointing earnings and production results for its most recent quarter due to pandemic-related disruptions, ongoing supply-chain constraints, and labor shortages.

It also warned that operating costs for 2022 were likely to come in at the upper end of previous guidance. We remain constructive on the stock, which offers steady production anchored in good jurisdictions, a good pipeline of organic projects, a strong balance sheet, and proven management.”

2. Teck Resources Limited (NYSE:TECK)

Number of Hedge Fund Holders: 68

Average Upside Potential: 20.63%

Teck Resources Limited (NYSE:TECK) is involved in the exploration, acquisition, development, and production of natural resources across Asia, Europe, and North America. It operates through Steelmaking Coal, Copper, Zinc, and Energy segments. Teck Resources Limited (NYSE:TECK) is one of the best copper stocks to buy. On February 22, the company declared a C$0.125 per share quarterly dividend, which is payable on March 28 to shareholders on record as of March 15. Teck’s board has also granted approval for management to buy Class B subordinate voting shares, with an authorized limit of $500 million.

According to Insider Monkey’s fourth quarter database, 68 hedge funds were bullish on Teck Resources Limited (NYSE:TECK), compared to 75 funds in the preceding quarter. Eric W. Mandelblatt’s Soroban Capital Partners is the biggest stakeholder of the company, with 8.8 million shares worth $371.8 million. 

1. Freeport-McMoRan Inc. (NYSE:FCX)

Number of Hedge Fund Holders: 83

Average Upside Potential: 17.38% 

Freeport-McMoRan Inc. (NYSE:FCX) is a mining company involved in mineral extraction across North America, South America, and Indonesia. Its primary focus is on exploring for copper, gold, molybdenum, silver, and other metals. Freeport-McMoRan Inc. (NYSE:FCX) is one of the best copper stocks to buy. 

On January 24, Freeport-McMoRan Inc. (NYSE:FCX) exceeded expectations in Q4 adjusted earnings, benefiting from increased copper demand and higher gold prices. Despite lower than anticipated precious metals sales volumes, Q4 copper revenues rose by 7% to 1.1 billion lbs. The average copper price was $3.81/lb, slightly below the full-year 2023 forecast of $3.85/lb as provided in October.

According to Insider Monkey’s fourth quarter database, 83 hedge funds were bullish on Freeport-McMoRan Inc. (NYSE:FCX), compared to 73 funds in the last quarter. 

Diamond Hill Large Cap Strategy made the following comment about Freeport-McMoRan Inc. (NYSE:FCX) in its Q4 2022 investor letter:

“Other top contributors during the quarter were copper producer Freeport-McMoRan Inc. (NYSE:FCX) and health care facilities operator HCA Healthcare. With little fundamental news to report, Freeport-McMoRan’s share price advance in Q4 reflected a rebound in copper prices, driven by the recognition that copper inventories are low relative to historical norms. We believe the company continues to have meaningful price and volume leverage in a copper constrained world.”

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Disclosure: None. 11 Best Copper Stocks To Invest In According To Analysts is originally published on Insider Monkey.