Southern Copper (SCCO) Surges 3.07% to Near 52-Week High Amid Copper Price Rally and Earnings Optimism

Summary
• Southern Copper (SCCO) trades at $179.72, up 3.07% intraday
• Intraday high hits $179.89, just shy of 52-week high
• Earnings estimates for fiscal 2025 rise on 2 upward revisions

Southern Copper’s stock is surging amid a record-breaking rally in copper prices and robust earnings momentum. The stock has pierced its 52-week high of $179.89, driven by surging demand for copper in AI infrastructure and electric vehicles, while the company’s earnings revisions and Zacks Rank 2 (Buy) signal strong near-term optimism. With the copper sector tightening supply and rising geopolitical tensions, SCCO’s rally reflects both macro and micro fundamentals aligning for a breakout.

Copper Price Surge and Earnings Optimism Drive Southern Copper's Rally
Southern Copper’s 3.07% intraday gain is fueled by a perfect storm of macro and company-specific factors. Copper futures have hit $6.05/lb, up 38.65% year-to-date, driven by supply disruptions in South America, U.S. tariff fears, and AI-driven demand. SCCO’s earnings revisions—2 upward adjustments in 60 days—have boosted consensus estimates to $5.27, while its Zacks Rank 2 (Buy) and Momentum Score of B highlight its outperformance. The stock’s 24.31% monthly gain and 82.89% annual surge align with copper’s structural demand shift, making SCCO a prime beneficiary of the metal’s supercycle.

Copper Sector Rally Gains Momentum as Southern Copper Outperforms
The copper sector is in a synchronized rally, with SCCO outpacing peers like Freeport-McMoRan (FCX), which gained 1.7% intraday. SCCO’s 3.07% surge reflects its dominant position in high-grade copper assets and disciplined capital allocation, while FCX’s more modest gain underscores its exposure to near-term production challenges. The iShares Copper and Metals Mining ETF (ICOP) rose 2.31%, mirroring SCCO’s momentum, as global copper demand is projected to grow 3.1% annually through 2028.

Leverage the Copper Rally with SCCO Options and ETFs
• Technical Indicators: 200-day MA: $111.60 (far below); 52W High: $179.89 (near); RSI: 79.0 (overbought); MACD: 8.42 (bullish)
• ETFs: ICOP (2.31% up) and EPU (1.26% up) offer sector exposure

Southern Copper is trading near its 52-week high with a bullish technical setup. Key levels to watch include the 200-day MA ($111.60) and the 52W high ($179.89). The stock’s RSI at 79.0 suggests overbought conditions, but strong fundamentals and copper’s structural demand justify holding. For leveraged exposure, consider the iShares Copper and Metals Mining ETF (ICOP), which tracks the sector’s momentum.

Top Options Picks:
• SCCO20260220C190: Call option with strike $190, expiring 2026-02-20. IV: 41.70% (moderate), Leverage Ratio: 31.01% (high), Delta: 0.373 (moderate), Theta: -0.157 (high decay), Gamma: 0.0156 (high sensitivity). Turnover: $104,318 (liquid).
• SCCO20260220C195: Call option with strike $195, expiring 2026-02-20. IV: 39.93% (moderate), Leverage Ratio: 44.96% (very high), Delta: 0.2928 (moderate), Theta: -0.134 (high decay), Gamma: 0.0148 (high sensitivity). Turnover: $4,356 (liquid).

SCCO20260220C190 offers a balanced risk-reward profile with high leverage and liquidity, ideal for a 5% upside scenario (target $188.71). SCCO20260220C195 provides amplified exposure for aggressive bulls, with a potential payoff of $13.71 per contract if SCCO hits $195. Aggressive bulls may consider SCCO20260220C195 into a breakout above $190.

Backtest Southern Copper Stock Performance
The backtest of SCCO's performance after a 3% intraday increase from 2022 to the present shows favorable results. The 3-day win rate is 53.74%, the 10-day win rate is 53.55%, and the 30-day win rate is 58.16%, indicating that the stock tends to experience positive returns in the short term following the intraday surge. The maximum return during the backtest period was 5.89%, which occurred on day 59, suggesting that there is potential for significant gains if the positive momentum continues.

Southern Copper's Rally Gains Traction—Position for a Breakout Above $190
Southern Copper’s rally is underpinned by a confluence of copper’s structural demand surge and its own earnings momentum. With the stock trading near its 52-week high and copper prices at record levels, the key technical level to watch is $190. A breakout above this would validate the stock’s continuation of its 82.89% annual surge. Investors should monitor the iShares Copper and Metals Mining ETF (ICOP) and SCCO’s options chain for liquidity and leverage opportunities. The sector leader, Freeport-McMoRan (FCX), gained 1.7% today, but SCCO’s Zacks Rank 2 and Momentum Score of B position it as the top play in the copper sector. Watch for a $190 breakout or a pullback to the 200-day MA ($111.60) to confirm the trend’s sustainability.