Simultaneously, copper is currently priced at $3.50 per pound -- the average price for the past five years or so -- and is holding steady. It's a stability (read, predictability) the copper market hasn't seen in years and one that could last for years.
Add in the fact that Southern Copper has already managed to crank up the top and bottom since 2009 (growing the bottom line from 2009's $929 million to last year's record $2.3 billion) even before the copper market's new stability materialized, and what you have is a proverbial perfect storm.
Risks to Consider: The biggest worry here isn't corporate performance, but in the way investors perceive these companies. As long as the economy remains stable, these three stocks should remain in favor. If the economy significantly sours, however, then these picks could fall out of favor rather quickly.
Action to Take: Were all these stocks in the same industry, or even the same sector, choosing just one would be preferable. In this case though, these three stocks are different enough to where you may want to own a stake in them all. All three have double-digit upside for the next 12 months, supported by trailing as well as forecasted results.
James Brumley does not personally hold positions in any securities mentioned in this article. StreetAuthority LLC does not hold positions in any securities mentioned in this article.
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