In this article, we discuss 5 copper stocks to buy now as recession fears recede. If you want to see more stocks in this selection, click 10 Copper Stocks to Buy Now as Recession Fears Recede.
5. Teck Resources Limited (NYSE:TECK)
Number of Hedge Fund Holders: 56
Teck Resources Limited (NYSE:TECK) is headquartered in Vancouver, Canada, and mines natural resources in Asia, Europe, and North America. It operates through Steelmaking Coal, Copper, Zinc, Energy, and Corporate segments. In FY 2022, while maintaining guidance for the production of copper at 273,000 to 290,000 tons. On July 27, Teck Resources Limited (NYSE:TECK) declared a C$0.125 per share quarterly dividend, in line with previous. The dividend is distributable on September 29, to shareholders of record on September 15. Teck Resources Limited (NYSE:TECK) proposed share repurchases of up to $500 million, of which $436 million has been purchased to date.
On July 28, National Bank analyst Shane Nagle maintained an Outperform rating on Teck Resources Limited (NYSE:TECK) and lowered the price target on the stock to C$52.50 from C$55. Analysts at RBC Capital, Raymond James, Scotiabank, TD Securities, and Deutsche Bank also kept Outperform ratings on the stock.
According to Insider Monkey’s data, 56 hedge funds were long Teck Resources Limited (NYSE:TECK) at the end of Q1 2022, up from 40 funds in the earlier quarter. Eric W. Mandelblatt’s Soroban Capital Partners is the largest shareholder of the company, with 12.25 million shares worth $495.16 million.
4. Freeport-McMoRan Inc. (NYSE:FCX)
Number of Hedge Fund Holders: 68
Freeport-McMoRan Inc. (NYSE:FCX) is an Arizona-based company that is involved in the mining of mineral properties in North America, South America, and Indonesia. The company mines for copper, gold, molybdenum, silver, and other metals. On July 22, RBC Capital analyst Sam Crittenden maintained a Sector Perform rating on Freeport-McMoRan Inc. (NYSE:FCX) but lowered the price target on the shares to $35 from $46. The company posted a strong operating quarter yet again, though he also sees ongoing volatility in copper prices amid macro concerns over a future slowdown in demand fears in case of a recession, the analyst told investors. Freeport-McMoRan Inc. (NYSE:FCX) stock could respond rapidly when market sentiment improves, though the analyst’s slashed price target factors in reduced multiples.
Among the hedge funds tracked by Insider Monkey, 68 hedge funds were bullish on Freeport-McMoRan Inc. (NYSE:FCX) at the end of Q1 2022, up from 66 funds in the prior quarter. Ken Fisher’s Fisher Asset Management is the largest stakeholder of the company, with 50.75 million shares worth $2.5 billion.
Here is what Carillon Scout Mid Cap Fund has to say about Freeport-McMoRan Inc. (NYSE:FCX) in its Q1 2022 investor letter:
“Supply chains eased for some goods, but remained challenged for many commodities including energy, agriculture, and fertilizer due to war and general scarcity, and also in many consumer products as semiconductors remained in short supply. Copper and gold producer Freeport- McMoRan (NYSE:FCX) rose as copper prices remained strong due to supply shortages and growing use in renewable energy systems and electric vehicles.”
3. Grupo México, S.A.B. de C.V. (OTC:GMBXF)
Number of Hedge Fund Holders: N/A
Grupo México, S.A.B. de C.V. (OTC:GMBXF) is a Mexico-based company that engages in copper production, freight transportation, and infrastructure businesses worldwide. The Mining division explores for copper, silver, molybdenum, zinc, sulfuric acid, gold, and selenium.
On August 4, Goldman Sachs analyst Marcio Farid initiated coverage of Grupo México, S.A.B. de C.V. (OTC:GMBXF) with a Buy rating and MXN 111 price target. The analyst is optimistic on the company’s diversified, top-notch assets, with investments in copper mines, smelters, railroads, and infrastructure, noting that Grupo México, S.A.B. de C.V. (OTC:GMBXF)’s “extensive, high-quality copper assets coupled with profitable operations in the infrastructure and transportation sectors should allow for strong free cash flow generation in the next years”.
2. Glencore plc (OTC:GLNCY)
Number of Hedge Fund Holders: N/A
Glencore plc (OTC:GLNCY) is a Swiss company that refines, processes, and transports metals, minerals, and energy products in the Americas, Europe, Asia, Africa, and Oceania. The company produces copper, cobalt, nickel, zinc, lead, chrome ore, ferrochrome, vanadium, alumina, aluminum, tin, and iron ore. Glencore plc (OTC:GLNCY) recorded an H1 profit of $18.6 billion and said it will return an additional $4.5 billion to shareholders in dividends and share buybacks.
On August 5, JPMorgan analyst Dominic O’Kane reiterated an Overweight rating on Glencore plc (OTC:GLNCY) and lowered the price target on the shares to 590 GBp from 620 GBp.
1. Copper Mountain Mining Corporation (OTC:CPPMF)
Number of Hedge Fund Holders: N/A
Copper Mountain Mining Corporation (OTC:CPPMF) was founded in 2006 and is headquartered in Vancouver, Canada. It is a mining company exploring for copper, gold, and silver deposits. The production in Q2 2022 was 16.1 million pounds of copper equivalent, including 13.3 million pounds of copper, 5,792 ounces of gold, and 61,628 ounces of silver.
On July 26, BMO Capital analyst Rene Cartier maintained an Outperform rating on Copper Mountain Mining Corporation (OTC:CPPMF) but lowered the price target on the shares to C$3.25 from C$3.75. TD Securities analyst Craig Hutchison on July 26 reaffirmed a Buy recommendation on Copper Mountain Mining Corporation (OTC:CPPMF) and lowered the price target on the shares to C$2.75 from C$3.25.
You can also take a look at This Analyst Is Bearish on These 15 Retail Stocks Amid “Soft Landing” Expectations and The 10 Best Value ETFs to Invest In.
