We recently published a list of the 10 Best Copper Stocks to Buy According to Wall Street Analysts. In this article, we are going to take a look at where Rio Tinto Group (NYSE:RIO) stands against other best copper stocks to buy according to Wall Street analysts.
The U.S. stock market has changed rapidly since the new president took control of the Oval Office. In the list of commodities that are recently surfacing as standout performers in the market, copper holds a significant place. The commodity has captured the attention of investors across the globe. According to The Wall Street Journal, by the end of March 2025, the U.S. copper future saw a 26% increase, reaching $5.02 per pound. The extraordinary growth, in addition to surpassing global prices, has set unprecedented records in the industry.
The recent tariff implementations from the U.S. administration stand among the heavy contributors to this surge. The U.S. president has recently announced a series of tariff increases, targeting the major trading partners of the U.S. Accordingly, the EU imports will be charged a 20% tariff. Chinese goods have the most impact at a 34% tariff. Similarly, a minimum 10% hike is imposed on all imports globally. Because of these measures, the average tariff rate has risen to 23%, the highest in over a century. The WSJ calls it the most significant shift in the United States’s approach to global trade.
READ ALSO: Why These Energy Stocks are Gaining This Week.
These new tariffs affect the import and export of various goods in the U.S. concerning copper. A rush has been noted to import the commodity into the U.S. before the new import tax rates take effect. This influx has resulted in a notable rise in physical deliveries, causing domestic copper prices to surge.
Income-seeking investors in the market, however, need to look past these immediate market reactions and focus on the long-term outlook for copper. Even in the long run, the value of copper remains robust. An article by CNBC noted that the world’s leading mining companies anticipate a 70% growth in the global demand for copper by 2050. The surge is expected to be driven by the adoption of copper-intensive technologies, such as renewable energy systems and electric vehicles. With constant growth in several customers shifting to renewable energy-based technologies, such an increase in demand for the commodity is inevitable.
On the other hand, the industry will likely face significant challenges in meeting this rise in demand. The mining industry, for instance, faces constraints like declining ore grades and the need for substantial capital investments to develop new projects. Owing to these factors, the growth in supply and the industry’s ability to sustain high copper prices in the future could take a hit.
Even so, copper stocks remain attractive, and investors are increasingly looking towards adding them to their portfolios to give them a diverse touch. The immediate price surges due to trade policies and the potential for long-term demand position the copper sector as a compelling investment avenue. But with this said, investors may be wondering what the best copper stock to buy today is.
Our Methodology
We followed a few criteria when putting together our list of best copper stocks for investors. Primarily, we considered only those copper stocks with an upside potential of 10%. The criteria were placed to present our interested investors with stocks with the prospect of significant capital appreciation. A substantial rise in the price of stocks often correlates with substantial profits for investors. Hence, we ranked our list based on this upside potential. We have also considered only those stocks followed by hedge funds listed in Insider Monkey’s Q4 2024 database. It ensures the institutional interests in the stocks.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Aerial view of an open pit mine, with workers extracting minerals.
Rio Tinto Group (NYSE:RIO)
Number of Hedge Fund Holders: 39
Upside potential: 30.07%
Operating from its headquarters in London, United Kingdom, a global mining and metals company, Rio Tinto Group (NYSE:RIO) is engaged in exploring and processing essential minerals. Along with copper, the range of minerals the company handles includes iron ore, aluminum, and lithium. Rio Tinto Group operates across six continents, and its client base covers the construction, automotive, and energy industries. Despite the large-scale business operation, the company maintains its competitive strength with the help of its diversified assets and its high-performance efficiency.
Strong performances in copper and aluminum, as reported in the fourth quarter results, contributed to a 3% increase in net operating cash flow. Rio Tinto Group (NYSE:RIO) has also garnered the support of its stakeholders by maintaining a 60% payout for the ninth consecutive year. With copper production expected to increase between 780,000-850,000 tons, the company anticipates a rise in capital expenditure to $11 billion. The Rincon project in Argentina and the Simandou project in Africa are expected to generate returns and increase shareholder value in 2025.
As one of the best copper stocks to invest in, Rio Tinto Group (NYSE:RIO) has attracted 39 hedge fund holders from the Insider Monkey database as of Q4 2024. Hedge funds reflect a steady institutional engagement. An upside potential of 30.07% positions the stock as a potentially undervalued large-cap copper stock for investors to buy.
Overall, RIO ranks 7th on our list of best copper stocks to buy according to Wall Street analysts. While we acknowledge the potential for RIO as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than RIO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
