Copper prices are in the midst of a sharp rally, and there are a few stocks investors could check out to play the trend, according to Strategas. Last week, the futures contract for May delivery of copper jumped to its highest level since January 2023, touching $4.2565 on Thursday. The recent price action in the brassy metal caught the attention of Chris Verrone, head of the firm's technical strategy and macro research team. In a Thursday report, he called out the “explosive move from copper” and identified stocks with exposure to the metal that are breaking out of their multi-year ranges. Here are a few of the U.S.-listed tickers he identified as having the highest correlation to copper in the last decade: Verrone listed Freeport-McMoRan and Southern Copper among his favorite names. These stocks, he said, “should be added to on any near-term/overbought pullbacks.” Copper mining company Freeport-McRoRan has rallied 16% this year. However, analysts are split on the stock: Just over half of those who cover Freeport-McMoRan rate it a buy, according to LSEG. The average price target suggests downside of about 3% from current levels. In January, Bernstein analyst Bob Brackett upgraded the name to an outperform rating. He called out a possible “significant catalyst” in 2024: The prospect of Indonesia extending a special mining license – known as the IUPK – for FreeportMcMoran's Grasberg mine. “The catalyst may come to fruition soon as the Indonesian government grants a 2×10-year IUPK extension from 2041 to 2061,” Brackett wrote. Fellow miner Southern Copper has soared 28% so far this year. Half of the analysts covering the stock have a negative view, rating it underperform, per LSEG. The average price target suggests 29% downside from current levels. But last month, Jefferies bucked the trend when analyst Alejandro Anibal Demichelis upgraded the stock to a buy rating, citing an improving copper price outlook as a catalyst. He also raised his price target to $130 from $91, implying that shares could rally about 17% from their Friday close. “We believe that its integrated, open-pit, low-cost operations (particularly those in Mexico) and high copper reserve life (c50 years) differentiates SCCO from other global industry peers,” Demichelis wrote.
News Related-
Leon Cooperman says it's a stock picker's market. Here are his new favorite bets
Billionaire investor Leon Cooperman thinks that it's a stock picker's market and only individual names will offer value for investors as the overall market struggles. A new filing just revealed his top selections. The chair and CEO of Omega Advisors held about $167 million worth of Energy Transfer at the ...
See Details: Leon Cooperman says it's a stock picker's market. Here are his new favorite bets -
These bond funds are among the top performers in 2023 – Here’s what investors should do next
It's been a good year for yield-chasing investors willing to take some risk in fixed income. The Federal Reserve's rate hikes since March 2022 have had the pleasant side effect of lifting yields on interest-bearing assets ranging from Treasury bills to money market funds. The lowly 1-year certificate of deposit ...
See Details: These bond funds are among the top performers in 2023 – Here’s what investors should do next -
Goldman's hedge fund VIP portfolio is up 31% this year. These are the stocks on the list
Hedge funds' favorite stocks have crushed the broader market in 2023, returning 31%, thanks to mega-cap technology companies, according to Goldman Sachs. The Wall Street bank analyzed the holdings of 735 hedge funds with $2.4 trillion of both long and short equity positions at the start of the fourth quarter, ...
See Details: Goldman's hedge fund VIP portfolio is up 31% this year. These are the stocks on the list -
A bearish options bet against this coffee stock showing some fatigue
Identifying underperforming stocks is becoming a challenge, with the broader market approaching new highs. Starbucks (SBUX) looks like it could be an interesting stock to bet against. While the stock saw an impressive 18% surge post an earnings beat at the start of the month, it's displaying indications of fatigue, ...
See Details: A bearish options bet against this coffee stock showing some fatigue