Would You Still Hold Southern Copper Stock If It Fell Another 30%?
Southern Copper (SCCO) stock is down 5.8% in a day. The recent slide reflects a Bank of America downgrade citing projected copper production declines and broader geopolitical concerns, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where Southern Copper stands today.
- Size: Southern Copper is a $170 Bil company with $12 Bil in revenue currently trading at $206.23.
- Fundamentals: Last 12 month revenue growth of 12.7% and operating margin of 50.3%.
- Liquidity: Has Debt to Equity ratio of 0.04 and Cash to Assets ratio of 0.22
- Valuation: Southern Copper stock is currently trading at P/E multiple of 44.4 and P/EBIT multiple of 26.7
- Has one instance since 2010 where it dipped >30% in < 30 days and subsequently returned 203% within a year. See SCCO Dip Buy Analysis.
These metrics point to a Strong operational performance, alongside Very High valuation – making the stock Relatively Expensive. For details, see Buy or Sell SCCO Stock
That brings us to the key consideration for investors worried about this fall: how resilient is SCCO stock if markets turn south? This is where our downturn resilience framework comes in. Suppose SCCO stock falls another 20-30% to $144 – can investors comfortably hold on? Turns out, the stock has fared worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
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2022 Inflation Shock
- SCCO stock fell 45.2% from a high of $78.17 on 1 April 2022 to $42.81 on 26 September 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 1 February 2023
- Since then, the stock increased to a high of $218.85 on 2 March 2026 , and currently trades at $206.23
| SCCO | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -45.2% | -25.4% |
| Time to Full Recovery | 128 days | 464 days |
2020 Covid Pandemic
- SCCO stock fell 47.0% from a high of $44.41 on 13 January 2020 to $23.53 on 23 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 27 July 2020
| SCCO | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -47.0% | -33.9% |
| Time to Full Recovery | 126 days | 148 days |
2018 Correction
- SCCO stock fell 49.1% from a high of $57.34 on 18 April 2018 to $29.21 on 3 January 2019 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 23 November 2020
| SCCO | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -49.1% | -19.8% |
| Time to Full Recovery | 690 days | 120 days |
2008 Global Financial Crisis
- SCCO stock fell 80.5% from a high of $47.12 on 29 October 2007 to $9.19 on 20 November 2008 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 13 December 2010
| SCCO | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -80.5% | -56.8% |
| Time to Full Recovery | 753 days | 1,480 days |
Feeling jittery about SCCO stock? Consider portfolio approach.
The Best Investors Think In Portfolios
Stocks can jump or crash but long term success comes from staying invested. The right portfolio helps you ride gains and cushion single stock drops.
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