In this article, we discuss the 5 best copper stocks to buy. If you want to read about some more copper stocks, go directly to 10 Best Copper Stocks to Buy.
5. Rio Tinto Group (NYSE:RIO)
Number of Hedge Fund Holders: 33
Rio Tinto Group (NYSE:RIO) is the second largest metals and mining corporation in the world with interests in copper, aluminum, gold, silver, and other metals. In March, the firm announced that it had commenced copper extraction from the underground section of a massive mine in Mongolia. The project had faced years of delays, cost overruns, and disputes with the Mongolian government.
On May 26, Morgan Stanley analyst Alain Gabriel upgraded Rio Tinto Group (NYSE:RIO) stock to Overweight from Equal Weight with a price target of 5,800 GBP. noting that demand concerns and falling iron ore prices have derated Rio shares, presenting an opportunity to gain exposure to a business with high-quality assets, a growing copper footprint, improving operating performance and best-in-class capital return prospects.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Encompass Capital Advisors is a leading shareholder in Rio Tinto Group (NYSE:RIO) with 1.9 million shares worth more than $132 million.
4. Barrick Gold Corporation (NYSE:GOLD)
Number of Hedge Fund Holders: 41
Barrick Gold Corporation (NYSE:GOLD) is a mining firm that focuses on the extraction and development of gold and copper. It has operations in more than 10 countries around the world. Recent reports indicate that the company has decided not to pursue the acquisition of copper assets of Teck, another mining firm, signaling a disinterest in expanding a portfolio in the copper mining sector. The decision comes amidst a recent announcement from the firm that it would focus on strengthening gold and copper operations in jurisdictions where it already has a strong presence.
On April 21, investment advisory Barclays maintained an Overweight rating on Barrick Gold Corporation (NYSE:GOLD) stock and raised the price target to $28 from $26, noting the improved outlook in medium-term copper and gold prices.
At the end of the first quarter of 2023, 41 hedge funds in the database of Insider Monkey held stakes worth $763 million in Barrick Gold Corporation (NYSE:GOLD), compared to 43 the preceding quarter worth $721 million.
In its Q4 2022 investor letter, Old West Management, an asset management firm, highlighted a few stocks and Barrick Gold Corporation (NYSE:GOLD) was one of them. Here is what the fund said:
“Barrick Gold Corporation (NYSE:GOLD) is the second largest gold miner in the world, with operations in the U.S., Canada, Africa, South America and more. Barrick is also a major copper producer. Former Goldman Sachs executive John Thornton took control of the company in 2012 and quickly realized he wanted someone with a mining background to run the company. Mark Bristow, at that time CEO of Randgold, was considered one of the best gold mining executives in the world. Thornton wanted Bristow so badly Barrick bought Randgold in 2018. Bristow who is South African, had extensive experience operating mines throughout Africa, and in fact would fly his own single engine plane to visit mines. He has his PhD in Geology, and he has flourished running Barrick the past five years.
Barrick is estimated to have $1.6 billion of net income this year on $11.5 billion of revenue. Net Income has been growing 15% per year. The stock trades at $19.00 per share which is 16 times forward earnings, and the stock has a 3.15% dividend yield. Barrick has a fortress balance sheet with $5.7 billion in cash and $5 billion of long term debt, which is only one time EBITDA.”
3. Newmont Corporation (NYSE:NEM)
Number of Hedge Fund Holders: 52
Newmont Corporation (NYSE:NEM) is the largest gold mining company in the world. It also has interests in other metals, like copper and zinc. In addition to the United States, the firm operates in Canada, Mexico, Dominican Republic, Peru, Suriname, Argentina, Chile, Australia, and Ghana, among other countries. Recent reports indicate that the company has increased an offer to acquire Newcrest Mining, an Australian gold producer, to $19.5 billion. This revised offer comes as Newmont aims to strengthen in the global gold market and expand a portfolio of mining assets.
On May 2, investment advisory National Bank maintained an Outperform rating on Newmont Corporation (NYSE:NEM) stock and raised the price target to C$94 from C$91. Analyst Mike Parkin issued the pricing update.
At the end of the first quarter of 2023, 52 hedge funds in the database of Insider Monkey held stakes worth $628 million in Newmont Corporation (NYSE:NEM), compared to 50 in the preceding quarter worth $991 million.
In its Q2 2022 investor letter, First Eagle Investment Management, an asset management firm, highlighted a few stocks and Newmont Corporation (NYSE:NEM) was one of them. Here is what the fund said:
“Shares of Colorado-based Newmont Corporation (NYSE:NEM), the largest gold miner in the world, experienced weakness in the quarter as falling gold bullion prices and cost inflation hurt miners in general. More idiosyncratically, the company reported slightly disappointing earnings and production results for its most recent quarter due to pandemic-related disruptions, ongoing supply-chain constraints, and labor shortages.
It also warned that operating costs for 2022 were likely to come in at the upper end of previous guidance. We remain constructive on the stock, which offers steady production anchored in good jurisdictions, a good pipeline of organic projects, a strong balance sheet, and proven management.”
2. Teck Resources Limited (NYSE:TECK)
Number of Hedge Fund Holders: 66
Teck Resources Limited (NYSE:TECK) is a natural resources firm that engages in the mining of copper, zinc, and other metals. The firm has mining interests in many countries, including Australia, Chile, Ireland, Mexico, Peru, Turkey, and the United States, among others. The firm is one of the biggest copper producers in the world with copper mines in Canada and South America. In late March, the firm announced the successful achievement of first copper production at the QB2 project in northern Chile. This milestone marks an important step in the development of the project, which is a joint venture with Sumitomo Metal Mining and has a significant copper resource base. The QB2 project is expected to have a long mine life and contribute to the copper production portfolio of the firm.
On May 3, Deutsche Bank analyst Abhi Agarwal maintained a Buy rating on Teck Resources Limited (NYSE:TECK) stock and raised the price target to $47 from $46, noting that recovering demand in China and generally tight fundamentals should cushion the downside risks for metals and mining stocks.
Among the hedge funds being tracked by Insider Monkey, Florida-based investment firm Soroban Capital Partners is a leading shareholder in Teck Resources Limited (NYSE:TECK) with 11 million shares worth more than $404 million.
1. Freeport-McMoRan Inc. (NYSE:FCX)
Number of Hedge Fund Holders: 77
Freeport-McMoRan Inc. (NYSE:FCX) is an American mining company that explores and mines for copper, gold, silver, and other metals. The firm runs seven open-pit copper mines in North America, located in Morenci, Safford, Sierrita and Miami, Chino and Tyrone. In late April, the firm revised copper sales guidance for 2023 downward while upgrading the gold production outlook. The company has reduced the copper sales estimate due to operational challenges at the Grasberg mine in Indonesia, resulting in lower production volumes.
On April 23, Raymond James analyst Brian MacArthur maintained an Outperform rating on Freeport-McMoRan Inc. (NYSE:FCX) stock and lowered the price target to $47 from $48, noting the shares offer investors exposure to a portfolio of large, low-cost, long life copper assets with significant gold production.
At the end of the first quarter of 2023, 77 hedge funds in the database of Insider Monkey held stakes worth $1.6 billion in Freeport-McMoRan Inc. (NYSE:FCX), compared to 68 in the preceding quarter worth $4.7 billion.
You can also take a peek at 10 Best Stocks in Each Sector and 10 Best Regional Bank Stocks To Invest In.
