These 3 Copper Stocks Are Slowly Gaining Strength

You don’t hear much discussion about it on financial television or read about it too much on financial social media, but copper stocks are sneaking back up again. You can find an analyst or 2 who might mention the global shortage of semiconductors and how this one metal is a key component of the chips.

While crypto-related equities like Coinbase and Microstrategy keep showing up in “stock market news coverage,” these 3 copper stocks seem to get skipped. That’s probably okay for those who’ve been buying them lately as there’s a sense of getting in before the rush.

Whether that sense is accurate or not remains to be seen but it is true that Freeport-McMoRan, Southern Copper and Turquoise Hill Resources are looking better recently.

Here’s the daily price chart for Freeport-McMoRan:

The stock stabbed up toward 45 in January and then again in early February. It that level of resistance (selling) is taken out, Freeport could make a good run. It’s generally positive that the price remains above the up trending 50-day moving average (the blue line) and the up trending 200-day moving average. A close below the November and January lows of about 35 would be a concern.

Freeport McMoRan has a market capitalization of $62.58 billion and trades on the New York Stock Exchange with a price-earnings ratio of 14. Investors receive a .70% dividend yield.

The daily price chart of Southern Copper looks like this:

Similar to the Freeport chart, look at the way the price hits or approaches 69 and then backs away again. In the meantime, the 50-day moving average is now trending upward above the 200-day moving average. You can see how the positive divergence between price and the momentum indicator (MACD, below the price chart) is proving to be a helpful factor in analysis.

Southern Copper is NYSE-traded with a price-earnings ratio of 15. The market cap is $52 billion and the company pays a 5.33% dividend yield.

The Turquoise Hill Resources daily price chart is here:

This Canadian-based copper mining company is coming off that early November low with good buying energy. By late January, the 50-day moving average had climbed back above thet 200-day moving average in a sign of definite strength. The Australian investment firm Macquarie upgraded their opinion of Turquoise Hill Resources in late January from “neutral” to “outperform.”

With a price-earnings ratio of 7.86, this New York Stock Exchange traded company does not pay a dividend, unlike the other 2 stocks mentioned.

It’s clear that these copper mining stocks are now outperforming the big name, big tech equities that have strongly sold off from their highs of months ago. Along with gold miners, it’s becoming clear that the metals sector may be attracting some of the money that had been going into well-known NASDAQ-100 components.

Not investment advice. For educational purposes only.

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