Why Southern Copper Is Poised to Keep Rallying

Market-trouncing returns could be written in this 4-Star.

Brian D. Pacampara, CFA
Brian D. Pacampara, CFA
Feb 12, 2013 at 7:42PM
Energy, Materials, and Utilities

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

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

Southern Copper facts



Headquarters (founded)

Phoenix, Ariz. (1952)

Market Cap

$34.0 billion


Diversified metals and mining

Trailing-12-Month Revenue

$6.7 billion


CEO Oscar Rocha (since 2004)

CFO Genaro Mercado (since 2008)

Return on Equity (average, past 3 years)



$2.6 billion/$4.2 billion

Dividend Yield



BHP Billiton (NYSE:BHP)

Freeport-McMoRan (NYSE:FCX)

Rio Tinto (NYSE:RIO)

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

On CAPS, 96% of the 4,317 members who have rated Southern Copper believe the stock will outperform the S&P 500 going forward.

Earlier this week, one of those Fools, niss799, succinctly summed up the Southern Copper bull case for our community:

Copper is one of the primary minerals needed when industrial construction is growing. As this recession starts to give way to a bull market and construction increases copper will once again climb. [Southern Copper] has a dividend of $0.96 with a yield of 2.30%, good revenue and cash on [hand]. Debt is higher than I would like but the investments in equipment, land and processing mandate this.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.