We recently published a list of the 10 Best Copper Stocks to Buy According to Wall Street Analysts. In this article, we are going to take a look at where Hudbay Minerals Inc. (NYSE:HBM) stands against other best copper stocks to buy according to Wall Street analysts.
The U.S. stock market has changed rapidly since the new president took control of the Oval Office. In the list of commodities that are recently surfacing as standout performers in the market, copper holds a significant place. The commodity has captured the attention of investors across the globe. According to The Wall Street Journal, by the end of March 2025, the U.S. copper future saw a 26% increase, reaching $5.02 per pound. The extraordinary growth, in addition to surpassing global prices, has set unprecedented records in the industry.
The recent tariff implementations from the U.S. administration stand among the heavy contributors to this surge. The U.S. president has recently announced a series of tariff increases, targeting the major trading partners of the U.S. Accordingly, the EU imports will be charged a 20% tariff. Chinese goods have the most impact at a 34% tariff. Similarly, a minimum 10% hike is imposed on all imports globally. Because of these measures, the average tariff rate has risen to 23%, the highest in over a century. The WSJ calls it the most significant shift in the United States’s approach to global trade.
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These new tariffs affect the import and export of various goods in the U.S. concerning copper. A rush has been noted to import the commodity into the U.S. before the new import tax rates take effect. This influx has resulted in a notable rise in physical deliveries, causing domestic copper prices to surge.
Income-seeking investors in the market, however, need to look past these immediate market reactions and focus on the long-term outlook for copper. Even in the long run, the value of copper remains robust. An article by CNBC noted that the world’s leading mining companies anticipate a 70% growth in the global demand for copper by 2050. The surge is expected to be driven by the adoption of copper-intensive technologies, such as renewable energy systems and electric vehicles. With constant growth in several customers shifting to renewable energy-based technologies, such an increase in demand for the commodity is inevitable.
On the other hand, the industry will likely face significant challenges in meeting this rise in demand. The mining industry, for instance, faces constraints like declining ore grades and the need for substantial capital investments to develop new projects. Owing to these factors, the growth in supply and the industry’s ability to sustain high copper prices in the future could take a hit.
Even so, copper stocks remain attractive, and investors are increasingly looking towards adding them to their portfolios to give them a diverse touch. The immediate price surges due to trade policies and the potential for long-term demand position the copper sector as a compelling investment avenue. But with this said, investors may be wondering what the best copper stock to buy today is.
Our Methodology
We followed a few criteria when putting together our list of best copper stocks for investors. Primarily, we considered only those copper stocks with an upside potential of 10%. The criteria were placed to present our interested investors with stocks with the prospect of significant capital appreciation. A substantial rise in the price of stocks often correlates with substantial profits for investors. Hence, we ranked our list based on this upside potential. We have also considered only those stocks followed by hedge funds listed in Insider Monkey’s Q4 2024 database. It ensures the institutional interests in the stocks.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
An aerial view of a copper mine, showing the intricate workings of heavy machinery.
Hudbay Minerals Inc. (NYSE:HBM)
Number of Hedge Fund Holders: 39
Upside potential: 34.59%
Hudbay Minerals Inc. (NYSE:HBM) is a diversified Canadian mining company in Toronto, Canada. The company is involved in discovering, producing, and developing base and precious metals, primarily copper, gold, and zinc. Hudbay Minerals satisfies the demands of the global industrial and manufacturing markets with its key operating mines in Canada and Peru. Using its strong exploration capabilities, the company is increasing its growth-focused project pipeline, thereby competing with mid-tier producers like Lundin Mining and Capstone Copper.
Hudbay Minerals Inc. (NYSE:HBM)’s performance in the recent quarter has been slightly down, with the revenue hitting a 2.9% fall compared to the previous year. Additionally, the 2025 company guidance noted a stable production level from 2024, with the consolidated copper production maintained at an average of 144,000 tons. The company intends to reap the benefits from completing the optimization efforts at Copper Mountain in the next three years. In addition to this, other exploration plans, including Constancia and Snow Lake, also reflected positively in the analysts’ estimations for HBM.
Hudbay Minerals Inc. (NYSE:HBM), with 39 hedge fund holders at the end of Q4 2024, maintains a strong presence in institutional portfolios and is a valuable copper stock. Its 34.59% upside potential indicates a reasonable room for share price appreciation that could benefit the shareholders.
Overall, HBM ranks 6th on our list of best copper stocks to buy according to Wall Street analysts. While we acknowledge the potential for HBM as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than HBM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.