Copper’s Surge: 3 Top Trades Before the Market Catches On

Key Points

• Breakouts in the price of copper might lead investors to invest in other companies and names that could offer double-digit upside.
• Institutions have already jumped in for these two mining names and a copper ETF.
• Wall Street analysts reiterated their bullish views, as the fundamental story behind the ideas makes sense.

When it comes to connecting the dots across the financial markets, investors need to remember that price action in one area typically connects to the rest of the broader machine, where watching unusual moves in different asset classes can present some of the best opportunities elsewhere. Today, that is where the new all-time high price set by copper in the commodity markets will bring a big profit potential in the coming months for copper mining stocks.

As the manufacturing sector begins to turn around in the world’s two largest economies, the United States and China, demand for copper will likely break out in ways that translate into this bullish economic view moving forward. With this in mind, investors now have a small window of time to act before the rest of the market catches onto this trade.

For miners whose profits might see aggressive growth rates in the near future, investors can consider names like BHP Group Limited NYSE: BHP and even Rio Tinto Group NYSE: RIO as potential breakouts from the prices they trade at today. As a more diversified way to get into this view, the United States Copper Index Fund NYSEARCA: CPER offers a less bumpy road ahead in this bullish macroeconomic view.

Price Action in BHP Stock Shows the Way

As of the past month of trading, shares of BHP Group have outperformed the broader S&P 500 by as much as 6%, showing investors where the preference lies today amid a breakout in volatility for the entire market, as those who have connected the dots on the broader theme know where their capital is supposed to be going now.

With the copper trade comes the confidence that miners like BHP will start to outperform due to their underlying industry setup, and some of this is already being shown in the metrics the company presented in its latest quarterly financial results presentation.

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Investors can see how access to Chile’s copper reserves could place BHP Group in an advantageous position compared to the rest of the industry. They might have a better stance when it comes to cost control and pricing power. Because of this positioning, some institutional buyers decided to come on the scene.

Those from Wealth Enhancement Advisory Services, who decided to initiate a stake of up to $3.5 million in BHP stock today, gave a broader vote of confidence in the face of the new developments and breakouts seen in the price of copper over recent years.

Momentum Leads to Buying For Rio Tinto Stock

Just like its peer BHP Group, Rio Tinto stock has now outperformed the broader S&P 500 by as much as 10% over the past quarter, a breakout that might have driven more momentum buyers to jump into the stock as a potential bet that it could keep on going higher on this path.

The belief that new buyers could come in doesn’t have to remain a thesis, as investors can now see this fact playing out as $548 million of institutional capital made its way into Rio Tinto stock over the past quarter, with the same buyers as those in BHP Group stock also initiating a $5.6 million position for Rio Tinto.

A broader play in the copper breakout has now been spotted and is likely to continue as long as the commodity’s price remains at the highs. This outcome could be easily accomplished considering the trends in the economies of the United States and China.

Another sign of bullishness can be taken from the Overweight rating placed on the stock as of March 2025. This time, J.P. Morgan analysts decided to place an optimistic view on Rio Tinto stock.

A Clearer Path in CPER ETF

The copper exchange-traded fund (ETF) has proven itself to be not only a great correlated way for investors to play the boost in the commodity's price but also has delivered a year-to-date performance of up to 29.9% to absolutely leave the S&P 500 behind and most stocks in the market.

As a result of this breakout, $2.6 million of institutional buying took place over the past quarter, an indication that more professional investors feel confident in the thesis now happening behind copper and its role in the rebound for the world's two largest economies.

More than the economic rebound, copper is now also subject to President Trump's new trade tariffs, which might create new bottlenecks in the commodity and boost its price even higher. Traders are already pricing this potential scenario.