How Southern Copper Stock Gained 60%
Southern Copper (SCCO) stock surged 56%, fueled by a record-breaking Q3 and a sharp rise in earnings, while market optimism over dividend hikes and strategic moves like the Tia Maria project nudged valuations higher. But how did copper price swings and early-year results color this rally? Let’s unpack the story.
Below is an analytical breakdown of stock movement into key contributing metrics.
| 3082025 | 12032025 | Change | |
|---|---|---|---|
| Stock Price ($) | 88.9 | 138.6 | 55.8% |
| Change Contribution By | LTM | LTM | |
| Total Revenues ($ Mil) | 11,433.4 | 12,334.6 | 7.9% |
| Net Income Margin (%) | 29.5% | 31.0% | 4.9% |
| P/E Multiple | 21.8 | 29.8 | 37.1% |
| Shares Outstanding (Mil) | 826.8 | 822.7 | 0.5% |
| Cumulative Contribution | 55.8% |
So what is happening here? The stock price jumped 56%, driven by a 7.9% revenue increase, a 4.9% boost in net margin, and a hefty 37% rise in the P/E multiple. Let’s dive into what’s behind these shifts.
Here Is Why Southern Copper Stock Moved
- Q3 2025 Record Earn: Net sales $3.38B (+15.2% YoY), EPS $1.35 beat, strong by-product volumes, cash cost $0.42/lb.
- Copper Price Volaty: Copper prices highly volatile, hit $5.94/lb in July, dropped after tariff news, ended strong.
- Q1 & Q2 Earnings: Q1 beat forecasts with 20% sales growth. Q2 net income up 2.4% despite copper price decline.
- Dividend Increases: Consistent increases in quarterly cash dividends throughout 2025, reinforcing shareholder returns.
- Tia Maria Project: Tía María project received exploitation authorization, positioning for growth from 2027.
Our Current Assesment Of SCCO Stock
Opinion: We currently find SCCO stock fairly priced. Why so? Have a look at the full story. Read Buy or Sell SCCO Stock to see what drives our current opinion.
Risk: A good way to gauge risk for SCCO is to check its biggest drops in past market turmoil. It fell nearly 79% in the Global Financial Crisis, 48% in the 2018 correction, about 46% during the Covid crash, and 43% in the inflation shock. Even in less severe downturns, the stock took a serious hit. This shows that no matter how strong the fundamentals, SCCO isn’t immune when markets turn sour.
SCCO stock may have seen strong gains recently, but investing in a single stock without detailed, thorough analysis can be risky. The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.