Copper Staging a Comeback in 2026: 3 Stocks to Buy

Copper prices have lately demonstrated renewed momentum and are heading into 2026 with stronger price expectations, supported by tightening global supply, lingering uncertainty around potential U.S. trade tariffs, amid solid demand.

Copper consumption is expected to accelerate manifold in the coming years, driven by traditional industrial demand as well as the energy transition trend and the rapid expansion of digital infrastructure.  Meanwhile, declining ore grades and the lengthy timelines to bring new mines online are fueling concerns over a looming supply deficit, creating a supportive backdrop for structurally higher copper prices. Against this backdrop, stocks such as BHP Group Limited (BHP), Southern Copper Corporation SCCO and Teck Resources Limited TECK stand out as compelling opportunities for investors seeking exposure to copper’s cyclical upswing and attractive long-term fundamentals.

Copper Price Trend in 2025 and the Outlook for 2026

So far this year, copper has ranged from a low of $4.01 per pound in January to an all-time high of $5.96 per pound in July. Copper is currently trading around $5.47 per pound, with the year-to-date average hovering near $4.84 per pound.

Prices have picked up steam recently, supported by solid demand from China and the United States. In China, electric vehicles and energy infrastructure projects continue to drive consumption, while an AI-led investment boom has led to higher demand in the United States. In addition, the prospect of U.S. tariffs on refined metals has prompted traders to redirect shipments into the country, leading to tightening supply conditions. Supply-related fears have also intensified, with concerns around lower output or disruptions at major global mining operations, including Quebrada Blanca, Grasberg and Constancia. 

Adding to the bullish narrative, the U.S. Geological Survey included the red metal in its 2025 List of Critical Minerals, underscoring its strategic importance in U.S. energy independence and national security. This is also expected to unlock policy support, faster permitting and efforts to strengthen domestic supply chains. 
Copper prices are up roughly 35.8% this year, and are likely to finish the year with the highest gain since 2009.

Analysts are projecting higher prices on expectations that the impending demand-supply imbalance will keep prices well supported next year. 

Copper “Charging Ahead”: Solid Demand Amid Supply Constraints

One of the key reasons behind copper’s resurgence is surging demand across a wide range of sectors. Copper is the third most consumed industrial metal in the world, according to the U.S. Geological Survey. Given its widespread use, copper has long been considered a bellwether for the global economy. 

Copper demand has increased nearly fourfold in the last five decades, supported by sectors such as electrical and electronic products, building construction, industrial machinery and equipment, transportation equipment, and consumer and general products. 

The metal is also indispensable in the energy transition. Electric Vehicles require significantly more copper than traditional internal combustion engine vehicles, while renewable energy systems, power grids, and charging networks also rely heavily on copper supply. The rapid expansion of data centers to support Artificial Intelligence workload is a key growth area. Per the International Energy Agency, clean energy technologies are expected to account for around 36% of copper demand in 2040, up from 24% in 2021. 

This combination of traditional needs, decarbonization efforts and digitalization will push copper demand to new highs. However, the mining industry struggles to keep pace due to declining ore grades, higher capital costs, a shortage of high-quality future development opportunities and lengthy timelines involved. Environmental scrutiny and social challenges are also intensifying, particularly in Peru, where community opposition to mining projects is becoming an increasing risk. This demand-supply imbalance will push copper prices north, which bodes well for copper miners. 

3 Copper Stocks to Buy Now

We recommend adding the following copper-mining stocks to your portfolio. We have handpicked three stocks that have a Zacks Rank #1 (Strong Buy) or Rank #2 (Buy) and upbeat earnings growth projections. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

BHP Group: Supported by strong cash flows, the company reduced its long-term debt in recent years, strengthening its balance sheet and financial flexibility. The company continues to improve operational efficiency through technology adoption across its value chain, helping lower costs and expand margins. Copper has become a central pillar of BHP’s portfolio, now contributing 39% of EBITDA, one of the highest exposures among diversified miners. BHP has projects under execution and a robust pipeline that could deliver around 2 million tons per annum of attributable copper production by the 2030s. 

In Chile, it has a solid pipeline of organic growth options with attractive returns across its Escondida and Pampa Norte assets. The company expects this will enable copper production in Chile to average 1.4 Mtpa through the 2030s. Optimization efforts at Escondida will generate an incremental 400 kt of cumulative production over fiscal 2027-31, weighted to the later years. In South Australia, BHP is targeting copper output of more than 500 ktpa, with the potential to scale up to 650 ktpa longer term. Antamina has received environmental approval to continue mining to 2036. BHP and Lundin Mining have formed a 50-50 joint venture, Vicuña Corp., to develop the Josemaria and Filo del Sol copper deposits located in the Vicuña district of Argentina and Chile. The latter is one of the largest copper deposit discoveries in the last three decades. BHP also has a 45% interest in the Resolution Copper Project in the United States, one of the largest undeveloped copper projects in the world.

BHP has a long-term estimated earnings growth rate of 6.94%. The Zacks Consensus Estimate for the company’s fiscal 2026 and 2027 earnings indicates year-over-year growth of 26% growth of 2.7%, respectively. Both the estimates have moved up over the past 60 days. BHP shares have gained 28.5% in the past six months. 

Southern Copper: The company has the largest copper reserve in the industry and operates world-class assets in investment-grade countries, such as Mexico and Peru. SCCO’s capital investment program for this decade runs to more than $15 billion. The major portion (around $10.3 billion) is earmarked for Peru as the country is the second-largest producer of copper.  This includes investments in Tia Maria - Arequipa, Los Chancas - Apurimac and Michiquillay - Cajamarca projects in Peru.

The Tía María project is expected to produce 120,000 tons of SX- EW copper cathodes annually. The Los Chancas project is an open-pit mine with a combined operation of a concentrator and SX-EW processes. It is expected to produce 130,000 tons of copper and 7,500 tons of molybdenum annually, and is expected to start in 2030-2031. SCCO’s Michiquillay is expected to become one of Peru's largest copper mines and will produce 225,000 tons of copper per year (along with by-products of molybdenum, gold and silver) for an expected mine life of more than 25 years. Given its constant commitment to increasing low-cost production and growth investments, SCCO is well-positioned to continue delivering an enhanced performance. 

The Zacks Consensus Estimate for Southern Copper’s earnings for 2025 and 2026 have moved north in the past 60 days. The estimate for 2025 and 2026 indicates year-over-year growth of 21.7% and 16.4%, respectively. SCCO has a long-term estimated earnings growth rate of 20.6%. SCCO shares have gained 52% in the past six months the company currently sports a Zacks Rank of 1. 

Teck Resources: In September, Teck Resources entered into a merger agreement with Anglo American to form the Anglo Teck group. With the Supreme Court of British Columbia recently approving the deal, it is now moving closer to completion with only satisfaction or waiver of customary closing conditions remaining. Anglo Teck will have more than 70% exposure to copper and is set to be among the top five global copper producers. The new company will boast an industry-leading portfolio, consisting of six world-class copper assets, and premium iron ore and zinc operations. The combined annual copper production of 1.2 million tons is projected to grow 10% to 1.35 million tons by 2027.

Within four years of completion, the deal is expected to yield $800 million in annual pre-tax synergies. Around 80% of this is expected to be achieved within two years through economies of scale and operational efficiencies. The merger is also expected to generate an additional $1.4 billion in EBITDA synergies from 2030 to 2049 by optimizing adjacent assets, Collahuasi and Quebrada Blanca, through operational integration.

The Zacks Consensus Estimate for Teck Resources’  earnings for fiscal 2025 and 2026 indicates year-over-year growth of 73.5% and 13.6%, respectively. TECK has a long-term estimated earnings growth rate of 37.8%. TECK currently carries a Zacks Rank #2 (Buy).

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This article originally published on Zacks Investment Research (zacks.com).

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