NEW YORK ( TheStreet) -- Southern Copper (SCCO), Freeport-McMoRan Copper & Gold (FCX), Teck Resources (TCK), Vale (VALE) and Rio Tinto (RIO) are five copper stocks with potential upside of 17%-39% based on consensus analyst estimates for the upcoming 12 months.
A Standard Bank analyst comments that on a seasonally adjusted basis, April is a strong month for copper demand. China accounts for nearly 39% of global copper demand and the same is expected to expand by 9.5% in 2011, outpacing Europe by more than five times, as per median estimates of a Bloomberg survey of 19 economists. As Japan moves toward its restructuring program, demand for copper is set to boost.
A Goldman Sachs analyst believes that despite copper prices stalling in the next few months, prices will rebound and rally to $11,000 in 12 months on tightening supply and bullish demand -- an 18% increase from the current level.
A senior director at Fitch expects copper to remain in deficit in the current and the upcoming year with LME copper inventories hitting one- to two-week supply levels. Market analysts expect copper supply deficit of 444,000 tons in 2011, and a narrower 184,500 tons deficit in 2012, but prices are expected to remain high.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV