Can TMC The Metals Company Stock Beat the Market?

When asked to imagine mining operations, most will picture machinery moving around massive holes in the ground. TMC The Metals Company (NASDAQ: TMC) has something else in mind. Committed to deep-sea mining, TMC is working toward extracting cobalt, nickel, copper, and manganese from the polymetallic nodules (small mineral-rich rocks) that it procures from the sea floor.

Since the start of the year, shares of TMC have skyrocketed by approximately 375% as of this writing, vastly outperforming the S&P 500 (SNPINDEX: ^GSPC), which has risen by 14%. However, prospective investors want to know how the stock has performed over more extended time periods, and whether it has the potential to continue outperforming the market.

Let's take a closer look at TMC The Metals Company to answer these questions and see if the stock is worth closer consideration.

Image source: Getty Images.

Digging into the past performance of TMC The Metals Company

While the on-again/off-again trade war between the United States and China is one of the most recent catalysts leading to rises in critical minerals stocks, the innovative approach to mineral production that TMC offers has captured investors' interests for years since the company merged with a special purpose acquisition company (SPAC) in September 2021.

Over the past year, investors have found TMC stock alluring due to President Donald Trump's interest in shoring up the domestic supply of critical minerals -- an interest that was apparent soon after Trump's inauguration in January.

Data source: YCharts. Returns as of Nov. 21, 2025. The merger was completed on Sept. 9, 2021.

In April, Trump issued executive orders that (among other things) stated it was the nation's goal "to advance United States leadership in seabed mineral development." Unsurprisingly, shares of TMC, the poster child for deep-sea mining, soared.

When looking even farther back, the outperformance of TMC stock is even more striking. In 2022, shares rose after the company conducted a successful test of its technology. The following year, investors recognized an insider's stock purchase as an auspicious sign that TMC was sailing in the right direction.

There may be rough seas ahead, but they're not insurmountable

While TMC stock has logged some impressive gains, it's essential to recognize that the bullish buying activity all occurred before the company had even commenced commercial operations. Should the company continue to log progress toward achieving the revenue-generating phase of its development, it's highly likely that investors will continue to bid the stock higher.

But the company's success is hardly guaranteed. The company is in uncharted waters with its deep-sea mining ambitions, and there's no certainty that if it does begin operations, they will be profitable. For this reason, only investors with high risk tolerances should consider positions in TMC The Metals Company at this point.

Scott Levine has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.