#7 - Southern Copper (NYSE:SCCO)
Southern Copper Corporation (NYSE: SCCO) illustrates the risk of investing in stocks heavily tied to an underlying commodity. In this case, copper. The price of copper surged in 2022, and so did SCCO stock.
But 2023 has been a different story for copper. Demand is under pressure as the global economy weakens, particularly in the manufacturing sector. Southern Copper lagged the price of copper on its way up and now looks overvalued as copper is well off its highs.
This is reflected in analyst sentiment. Of the 17 analysts that have rated SCCO stock in the last three months, 16 have given the stock a Sell rating or lower.
Having even a handful of analysts give a stock a Sell rating is unusual. To have virtually every analyst assign the stock the same rating is a bearish signal that investors would do well not to ignore. The consensus price target for SCCO stock is $63.43, 21% lower than its closing price on August 17, 2023.
About Southern Copper
Southern Copper Corporation engages in mining, exploring, smelting, and refining copper and other minerals in Peru, Mexico, Argentina, Ecuador, and Chile. The company is involved in the mining, milling, and flotation of copper ore to produce copper and molybdenum concentrates; smelting of copper concentrates to produce blister and anode copper; refining of anode copper to produce copper cathodes; production of molybdenum concentrate and sulfuric acid; production of refined silver, gold, and other materials; and mining and processing of zinc, copper, molybdenum, silver, gold, and lead.
Read More - Current Price
- $93.01
- Consensus Rating
- Reduce
- Ratings Breakdown
- 2 Buy Ratings, 3 Hold Ratings, 4 Sell Ratings.
- Consensus Price Target
- $94.81 (1.9% Upside)
Many investors have countless strategies they use to help them buy stocks. A significantly smaller number have sound strategies for selling them.
We hope this presentation has shown you many reasons to sell a stock. Sometimes you buy a stock at the wrong price. Your reason for owning the stock may change. You may want to take profit. These are all valid reasons to sell stocks. But sometimes, the best reason is simply there are better options for getting a return on your investment.
And remember, selling a stock doesn't mean you have to sell your entire position. And even if you do, it doesn't mean you have to say goodbye to the stock forever. That's what watchlists are for. And if you're a MarketBeat All Access member you can manage an unlimited number of watchlists and get real-time alerts when there's news that may affect that stock.
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