Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, copper giant Southern Copper
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 | $42.15 billion |
Industry | Copper |
Trailing-12-Month Revenue | $4.79 billion |
Management |
CEO Oscar Rocha (since 2004) CFO Genaro Mercado (since 2008) |
Return on Equity (Average, Past 3 Years) | 31.8% |
Cash/Debt | $2.3 billion / $2.77 billion |
Dividend Yield | 3.4% |
Competitors |
Freeport-McMoRan
BHP Billiton
Vale |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 96% of the 4,178 members who have rated Southern Copper believe the stock will outperform the S&P 500 going forward. These bulls include SlowThought and All-Star DarthMaul09, who is ranked in the top 2% of our community.
Less than two months ago, SlowThought described Southern Copper in purely bullish terms: "International play, commodity play to fight the coming inflation. Plus, a nice dividend."
Southern Copper's low-cost mines and massive reserves continue to make it a highly rated play on the continued strength in copper prices. Over the next five years, Southern Copper is even expected to grow its bottom line at a much faster pace (31.6% per annum) than fellow North American copper giants Freeport (6.1%) and Teck Resources
CAPS All-Star DarthMaul09 elaborates on the bull case:
Copper's move appears to be related to both inflation and increasing demand. With new ETFs potentially buying part of the copper supply, this may further accelerate the price rise. With both [Freeport] and [Southern Copper] paying nice dividends, these stocks appear to be ideal for this environment.
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