COPJ ETF: Is Now the Time to Buy Junior Copper Stocks?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 03 2024
0mins
Source: TipRanks
COPJ ETF Overview:
- Tracks junior copper miners, high-risk, high-reward.
- Invests in small-cap copper mining companies.
- Focuses on companies with potential revenue growth.
- Sees long-term demand for copper due to renewable energy transition.
Market Trends and Speculation:
- Copper prices hit $10,000/ton, first time in two years.
- Growing demand from green industries.
- Potential supply constraints leading to market deficit.
- Need for new mines to meet renewable energy demand.
Investment Considerations:
- BHP's bid for Anglo American seen as bullish for copper.
- COPJ holds 42 stocks, top 10 holdings account for 57.4% of assets.
- Geographic diversification with exposure to Canada, Australia, etc.
- High expense ratio of 0.75%, dividend yield of 2.0%.
Analyst Ratings and Price Targets:
- Moderate Buy consensus rating for COPJ.
- Average price target implies 18% upside potential.
- Long-term investment opportunity due to supply-demand dynamics.
Risk and Reward:
- High-risk, high-reward investment not for the faint-hearted.
- Small-cap stocks can be volatile.
- Long-term potential for space makes risk worthwhile.
- Short-term and long-term outlook compelling for COPJ.
Analyst Views on BHP
Wall Street analysts forecast BHP stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for BHP is 54.88 USD with a low forecast of 48.00 USD and a high forecast of 68.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
2 Buy
1 Hold
1 Sell
Hold
Current: 65.610
Low
48.00
Averages
54.88
High
68.00
Current: 65.610
Low
48.00
Averages
54.88
High
68.00
About BHP
BHP Group Limited is an Australia-based resources company. The Company is a producer of commodities, including iron ore, copper, nickel, potash and metallurgical (steelmaking) coal. It is focused on offering a range of resources, which provides copper for renewable energy; nickel for electric vehicles; potash for sustainable farming, and iron ore and metallurgical coal for the steel needed for global infrastructure and the energy transition. Its segments include Copper, Iron Ore, and Coal. Its Copper segment is engaged in mining of copper, silver, zinc, molybdenum, uranium, and gold. Its Iron Ore segment is engaged in mining of iron ore. Its Coal segment is engaged in mining of metallurgical coal and energy coal. The Company is also focused on operating Olympic Dam, Prominent Hill, and Carrapateena underground copper-gold mines in South Australia. Its operations are situated in Australia, Europe, China, Japan, India, South Korea, rest of Asia, North America, South America, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
