Breakout On Southern Copper Stock as Doc Copper Surges
Copper is close to testing its resistance zone at $2.88. A decisive break above this level would close the neckline of a Bullish Inverted Head and Shoulders pattern.
Southern Copper Stock
Fundamentally, this company is a beast. SCCO’s Return On Asserts of 6.89% is among the best returns of the industry. SCCO outperforms 95% of its industry peers. The industry average Return On Assets is 0.93%.
SCCO’s Profit Margin of 165.88% is among the best returns of the industry. SCCO outperforms 96% of its industry peers. The industry average Profit Margin is 100.09%.
Southern Copper’s EPS is expected to grow by 37.79% on average over the next 2 years. This is very strong growth.
The time to buy Southern Copper stock was on the pocket pivot (blue dot). Darn! Do not chase SCCO higher. This chart is not a good setup right now as prices have been extended to the upside. Here’s what I’d like to see SCCO do and where I think we could enter.
The idea is to wait for a pullback and then consolidation on a momentum squeeze off support. If previous resistance becomes support and we get a candle over candle reversal off this level, that’s the time to go long. Add Southern Copper to your watch list and look for the setup.
Southern Copper Stock Review
- Profitability (Return On Assets, Return On Equity, and Profit Margin)
- Valuation (P/E, Forward P/E, PEG, Book Value, Price to Book Ratio)
- Growth (EPS and Revenue)
Southern Copper is one of the largest integrated copper producers in the world. They produce copper, molybdenum, zinc, lead, coal and silver. All of their mining, smelting and refining facilities are located in Peru and Mexico and they conduct exploration activities in those countries and Chile. Their common stock is listed on both the New York and Lima Stock Exchanges.
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