5 Best Copper Stocks To Invest In According To Analysts

In this article, we discuss 5 best copper stocks to invest in. If you want to read our discussion on the copper industry, head directly to 11 Best Copper Stocks To Invest In According To Analysts. 

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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