Top Copper Stocks in 2022: Is This the Year Copper Breaks Out?
Copper has been one of the best-performing commodities of the past five years with growing demand for the metal. In fact, the top copper stocks in 2022 are moving higher as breakout industries like EVs require it.
Furthermore, the demand doesn’t look to be slowing down anytime soon. Goldman Sachs (NYSE: GS) notes copper prices are “poised for the next leg higher,” with surging demand in a research note. Goldman is upgrading its long-term view of the precious metal with EV demand expecting to remain strong for at least ten years.
Although China released 50,000 T of copper last year to cool surging prices, copper is still holding strong. With this in mind, copper is the third most consumed metal, behind steel and aluminum. But, with a growing utility, the precious metal is one of the most highly anticipated commodities in the next several years.
At the same time, with inflation rising worldwide, commodity stocks tend to benefit. Keep reading to learn the top copper stocks in 2022 to capture the growing demand.
Top Copper Stocks in 2022: What to Look Out For
Although tech stocks are getting all the attention, several commodities are setting up nicely for a run in 2022. In particular, copper futures are consolidating as they look to take the “next leg higher,” as Goldman noted.
As you can see, since the pandemic lows, copper prices are up nearly 100%. But, in the past few months, prices are trading sideways. The sideways action is what Goldman Sachs is referring to when they are talking about the next leg higher.
With this in mind, here are the top copper stocks in 2022 that are leading the way.
No. 5 Capstone Mining (OTC: CSFFF)
- Market Cap: 2.26B
- PE Ratio: 8.32
- YOY Revenue Growth: 27%
Capstone Mining is based in Canada with two primary mines – Pinto Valley in the U.S and Cozamin in Mexico. In addition, the company owns a large-scale, copper-iron-gold project in Chile that’s expecting 118 kt of copper in its first five years.
The project is huge for furthering the company’s copper production at a time it’s in significant demand. This past quarter, with a record production of 44.4 million lbs, look for Capstone Mining to continue its momentum.
On top of this, with record operating cash flow, look for the miner to continue making strategic investments. With improving margins, Capstone is in a great position to drive future earnings, making it a great candidate for top copper stocks in 2022.
No. 4 Newmont Corp (NYSE: NEM)
- Market Cap: 47.5B
- PE Ratio: 23.47
- YOY Revenue Growth: (-8%)
Not only is Newmont the No. 1 producer of gold, but it also has a strong portfolio of copper. In 2020, Newmont had the largest mineral reserves with 94.2 million. And with gold prices on the rise, the mining company is also enjoying higher profit margins.
On top of this, Newmont has exposure to copper with 6.9 million tonnes in reserves and another 11.9 million in other resources.
Moreover, Newmont is on track to return over $2 billion to shareholders between stock buybacks and dividends. The returns indicate a healthy company with high demand and a healthy balance sheet.
No. 3 BHP Group (NYSE: BHP)
- Market Cap: 162.6B
- PE Ratio: 14.41
- YOY Revenue Growth: 71%
Since 1885, the Australian-based BHP Group has been a leader in mining essential resources. The company mines for copper, nickel, potash, and iron ore.
Even more, the resources are now in high demand. For instance, copper is used for renewable energy, nickel is being used in EVs, and iron ore is essential for infrastructure. Not only that, but potash demand is hitting a record high as food prices skyrocket.
Furthermore, the company is growing its earnings with top-line growth of over 70% in the past two quarters. Also, the company is paying down debt with its extra cash to improve its balance sheet.
As a result, BHP group increased its dividend to a massive $2 per share.
Keep reading to find the top copper stocks in 2022.
No. 2 Teck Resources (NYSE: TECK)
- Market Cap: 16B
- PE Ratio: 22.63
- YOY Revenue Growth: 73%
Teck Resources is another Canada-based mining company with operations in Canada, Peru, Chile and the U.S. Teck produced 71 kt copper, 218 kt total zinc and 6 Mt coal for steelmaking in the third quarter.
Both copper and coal are surging in price, widening the company’s profit margins. With both of them playing an important role in infrastructure, the company should continue seeing higher demand. So far, the company is accelerating top-line growth with a 48% YOY increase in Q2 and 73% in Q3.
On top of this, Teck is an industry leader in sustainability. For 12 consecutive years, Teck made the S&P Dow Jones Sustainability Index, ranking No. 1 this year in metals.
With ESG investing becoming a priority, Teck is leading the list of top copper stocks in 2022 in a major way. Not only that, but TECK stock is on the verge of breaking out into ATH territory as it builds momentum.
Top Copper Stocks in 2022 No. 1 Freeport-McMoRan Inc (NYSE: FCX)
- Market Cap: 61.6B
- PE Ratio: 15.89
- YOY Revenue Growth: 58%
Freeport is a mining company with significant ties to copper and gold. In fact, Freeport is the largest publicly traded copper producer.
So far, the company has operations in North America, South America and Indonesia with plans to expand. Since Q3 2020, Freeport is achieving double-digit annual revenue growth reaching over 6 billion this past quarter.
Likewise, the miner uses higher margins to lower debt and strengthen its balance sheet. Freeport reduced net debt from 7.6 billion to $2 billion in the third quarter.
As demand for copper continues, Freemont is in the perfect position to remain a market leader. As a result, look for Freeport to remain one of the top copper stocks in 2022.
Copper Stocks 2022 Forecast
Considering the fastest growing industries around us require copper, these stocks are set to continue building momentum.
These are some of the top copper stocks in 2022, looking to take advantage of the rising copper prices. More importantly, with copper used in EVs and other renewable energy sources, the metal will continue being in demand.
Copper looks to be on the verge of breaking out again this year which can further improve returns. As these companies strengthen their balance sheets, look for shareholders to be the biggest winners.