SCCO Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Southern Copper Corp (SCCO) is not an ideal buy for a beginner investor with a long-term strategy at this moment. The stock's valuation appears stretched, as highlighted by multiple analyst downgrades, and near-term operational challenges are expected. Despite strong financial performance in the latest quarter, the technical indicators and options sentiment suggest limited upside potential in the short term. Therefore, it is better to hold off on investing in SCCO for now.
The MACD histogram is negative (-2.667), indicating bearish momentum. RSI is at 35.599, which is neutral but leaning towards oversold territory. Moving averages are converging, showing no clear trend. Key support is at 154.459, and resistance is at 165.51, with the current pre-market price of 157 close to the support level. Overall, the technical indicators suggest a lack of strong bullish momentum.
Strong financial performance in Q4 2025, with revenue up 38.98% YoY, net income up 64.74% YoY, and EPS up 58.16% YoY. Gross margin also improved significantly to 56.01%.
Multiple analyst downgrades citing stretched valuation and operational challenges. Concerns over declining production through 2027 and elevated political risks in Peru. Weak technical indicators and bearish options sentiment. Pre-market price decline of -1.73%.
Southern Copper Corp reported strong financials for Q4 2025, with revenue increasing by 38.98% YoY to $3.87 billion, net income up 64.74% YoY to $1.31 billion, and EPS rising 58.16% YoY to $1.55. Gross margin improved to 56.01%, up 14.80% YoY, reflecting strong profitability.
Analysts have a predominantly bearish outlook on SCCO. Recent downgrades include BofA to Underperform, UBS to Sell, and JPMorgan to Underweight, all citing stretched valuation and operational challenges. Price targets range from $117.50 to $192, with most analysts highlighting limited upside potential and near-term risks.
