Southern Copper Corporation (NYSE:SCCO) is one of the stocks Jim Cramer shared his thoughts on. Mentioning that they started a position in the stock, a caller inquired if they should keep adding to it. Cramer replied:
“Look, I don’t mind Southern Copper, but copper has run a great deal, and you’ve got what I call a parabolic move in Southern Copper. It was up $5 today. It’s no longer got a… It’s 1.98% yield is all you get. The stock’s up 25% this year. I gotta tell you… I think you’re late. I can’t condone it.”
Photo by Adam Nowakowski on Unsplash
Southern Copper Corporation (NYSE:SCCO) focuses on mining, smelting, and refining copper. The company also processes several other materials, including molybdenum, zinc, silver, gold, and sulfuric acid. On January 13, Wells Fargo raised the company stock’s price target to $182 from $144, while maintaining an Equal-Weight rating.
The firm expects strong copper and aluminum performance in 2026 due to limited new supply during the first half of the year. In addition, Wells Fargo believes that the 50% tariffs on steel and aluminum imports will likely stay in place, and the US prices will remain elevated despite minor USMCA trade concessions.
While we acknowledge the potential of SCCO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
