Southern Copper ( (SCCO) ) is experiencing volatility. Read on for a possible explanation for the stock’s unusual movement.
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Southern Copper shares came under pressure as analysts focused on a small drop in copper output, rising operating costs, tighter working capital and higher capital spending, all of which raise concerns about the company’s ability to sustain its strong performance. These worries, together with perceived risks around major projects, have made some analysts more cautious despite Southern Copper’s record revenue, EBITDA and net income, driven by higher prices for copper, silver and other metals, as well as increased by‑product volumes that lifted margins and cash flow. The tension between strong recent results and a less certain near‑term outlook, combined with what many see as a rich valuation supported by a steady dividend and sizeable silver exposure, has produced mixed analyst views and left the stock trading around $208 per share.
More about Southern Copper
YTD Price Performance: 44.93%
Average Trading Volume: 1,586,140
Technical Sentiment Signal: Buy
Current Market Cap: $162.3B
For further insights into SCCO stock on TipRanks’ Stock Analysis page.
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