When it comes to metals, financial headlines focus more on gold and silver, and overlook one of the most common metals in the world: copper.
We need copper for computers, lights and televisions.
It is also critical for solar panels, wind turbines and motors and electric vehicle batteries.
And as the world moves out of the oil-dominated energy market into more green energy, the demand for copper will increase.
Check out this chart:
From 2010 to 2020, Global copper consumption soared by 31%.
The shift to more green energy solutions will continue to push this trend.
Companies with solid foundations in copper mining are expected to see increased profits from this increase in demand … and investors who take advantage of the trend will enjoy strong gains in the portfolio.
Today’s power stock is Ero Copper Corp. (Symbol: ERO).
Ero, the Canadian, is exploring and developing basic metal mines, mainly in Brazil. It produces and sells copper in an area that produces 41% of the world supply: Latin America.
ERO receives a “strong bull” score 92 out of 100 On our stock power rating system, and we expect it to beat the broad market 3 times in the next 12 months.
ERO Inventory: Huge growth potential and quality in copper
A few things stood out in the ERO when I searched in depth:
- In 2021, the company produced Record $ 489.9 million in revenue From its mining operations – An increase of 51% compared to the previous year!
- This jump was due to the company exceeding copper mining expectations by 3,511 tonnes in just one of its facilities.
ERO owns and operates two copper and gold mining facilities in central Brazil – a country with $ 41 billion in mining production by 2020.
In 2020, Ero’s R22W sale – in the state of Bahia in Brazil – was The fourth largest copper mine in the entire country.
His second mine, also in Bahia, was the fifth largest copper mine. ERO is one of the largest copper mines in Latin America.
The chart above shows that ERO faced headwinds in 2021.
But in 2022, it climbed 39.1% from its 52-week low and is starting to show strong upward momentum.
A solid annual report for 2021 renewed investor confidence in the stock.
The growing need for copper in the car and battery markets will push this stock even further.
Ero Copper Stock Scores a 92 in total.
That means we are “strong bulls” and expect it to beat the broad market At least three times in the next 12 months.
The stock tops all stocks except 2% which we rate in quality. Its ability to increase copper production year after year and return a gross profit of 74.6% drives its quality score of 98.
grant: ERO has huge growth potential. The annual growth rate of earnings per share is an impressive 279.7%, and the annual growth rate of its annual sales is 51.2%.
Stay up to date: the bank with the best performance
Remember: We are advertising Daily Stock Power Five days a week to give you access to the top companies our proprietary stock rating recognizes!
Stay tuned for the next issue, where I will share all the details about a bank stock that offers exposure to cryptocurrencies!
Matt Clark, CMSA®
Researcher, Money and Markets Analyst
ERO Stock to Crush Market as EVs Demand Copper Source link ERO Stock to Crush Market as EVs Demand Copper