SCCO Should I Buy
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Southern Copper Corp (SCCO) is not an ideal buy for a beginner investor with a long-term strategy at this moment. While the company has shown strong financial performance and growth in 2025, the current technical indicators, insider selling trends, and analyst sentiment suggest limited upside potential in the near term. The stock appears overvalued based on analyst commentary, and there are no strong positive catalysts to justify immediate entry.
The stock is in a neutral technical position. While moving averages are bullish (SMA_5 > SMA_20 > SMA_200), the MACD is negatively expanding (-0.855), and RSI is neutral at 50.43. The pre-market price is down 1.95%, and the stock is trading below the pivot level of 198.699, with key support at 187.326. These indicators suggest a lack of strong upward momentum.
Record sales of $13.4 billion in 2025, a 17% increase YoY.
Strong financial performance in Q4 2025, with revenue up 38.98% YoY and net income up 64.74% YoY.
U.S. government initiatives to boost domestic critical minerals could indirectly benefit Southern Copper.
Insider selling has increased significantly (3415.15% in the last month).
Analysts have downgraded the stock, citing overvaluation and limited upside.
Political risks in Peru and potential production declines in 2026 weigh on sentiment.
Options data indicates bearish sentiment with a high put-call volume ratio of 1.84.
Southern Copper Corp reported strong Q4 2025 financials: Revenue increased by 38.98% YoY to $3.87 billion, net income increased by 64.74% YoY to $1.31 billion, and EPS rose by 56.57% YoY to $1.55. Gross margin improved to 56.01%, up 14.80% YoY.
Analysts are largely bearish on SCCO. UBS, JPMorgan, and Scotiabank have downgraded the stock, citing overvaluation and limited upside. Price targets range from $117.50 to $192, with most firms maintaining Underperform or Sell ratings. Analysts also highlight risks related to political instability in Peru and declining production in 2026.
