Southern Copper (SCCO) shares rose by 6.2% in the last trading session, closing at $170.52. This increase was accompanied by higher trading volumes than usual. Over the last four weeks, the stock has seen an 8.8% gain.<\/p>\n
The rise in Southern Copper\u2019s shares can be attributed to increased copper prices. Copper has surged by 39.2% over the past year, now trading near a record high of $6 per pound amid tightening supply concerns. Expectations of additional rate cuts and policy easing in China are further supporting the metal.<\/p>\n
Southern Copper is projected to report quarterly earnings of $1.46 per share, reflecting a 44.6% year-over-year increase. Revenues are anticipated to reach $3.62 billion, marking a 30.1% increase from the same quarter last year.<\/p>\n
Research indicates a strong correlation between trends in earnings estimate revisions and stock price movements. For Southern Copper, the consensus EPS estimate has been revised upward by 17.2% over the past 30 days. A positive trend in earnings estimate revision often leads to price appreciation.<\/p>\n
Southern Copper belongs to the Zacks Mining – Non Ferrous industry, alongside First Quantum Minerals (FQVLF). FQVLF ended the session 4.2% higher at $28.52, with an 11.5% monthly return.<\/p>\n
We are seeing a strong bullish signal in Southern Copper, driven by a surge in copper prices to nearly $6 per pound. This rally is supported by expectations of interest rate cuts from the Federal Reserve and ongoing stimulus in China, where December 2025 manufacturing PMI data showed modest expansion at 50.8. The high trading volume on SCCO’s recent 6.2% jump suggests conviction behind the move.<\/p>\n
The significant upward revision of 17.2% in quarterly earnings estimates for SCCO is a key factor for us. This fundamental strength, unlike the flat estimates for peers like First Quantum Minerals, points to company-specific outperformance. Derivative traders should consider bullish strategies, such as buying call options or establishing bull call spreads to capitalize on this expected price appreciation ahead of the earnings report.<\/p>\n
However, implied volatility is likely elevated given the recent price spike and the approaching earnings date. Looking back at similar situations in 2025, we saw that selling premium can be profitable when IV is high. Traders comfortable with the stock’s direction might consider selling cash-secured puts at a strike price where they would be willing to own the shares.<\/p>\n
Supply-side tightness remains a critical catalyst for the copper market, a lesson we learned throughout the disruptions of the last couple of years. Recent data shows global copper inventories remain near multi-year lows, and with ongoing labor negotiations at key mines in South America, any hint of further disruption could push prices even higher. This provides a supportive backdrop for maintaining a long bias on copper producers like SCCO.<\/p>\n","protected":false},"excerpt":{"rendered":"
Southern Copper stock rises on copper price surge, earnings optimism, and upward revisions supporting continued momentum.<\/p>\n","protected":false},"author":62,"featured_media":0,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-38891","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\n\t\t