Southern Copper recently announced a pause in its stock buyback program after not repurchasing any shares in the latest tranche despite having completed nearly 14% of its total buyback target since its launch in 2008. This development could have contributed to the company's 11% price increase over the past week. This rise is notable, especially when compared to the broader market decline, where major indices such as the Dow Jones and S&P 500 experienced declines due to uncertainties about tariffs and economic recession concerns. While tech stocks saw widespread selling, resulting in sharp declines for companies like Nvidia and Tesla, Southern Copper's performance indicates resilience amid these broader market headwinds. This specific divergence from the general market's downward trend, combined with halted buybacks, may showcase investor belief in Southern Copper's inherent value or stability in the current market conditions.

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The last five years have seen Southern Copper's total return, inclusive of both share price appreciation and dividends, achieve a very large 431.62%. This standout performance, compared to broader market trends, reflects a combination of factors. Notably, the company's earnings have consistently grown, averaging 12.5% annually over this timeframe, and recent reports revealed a significant 39.2% earnings growth last year, outpacing the broader Metals and Mining industry's decline. This robust financial performance is underlined by high net profit margins that increased from 24.5% to 29.5%, showcasing operational efficiency.

Other relevant developments include consistent dividend increases, which likely supported the stock's attractiveness to income-focused investors. In late 2024, the company authorized a quarterly cash dividend increase to US$0.70 per share, further enhancing shareholder returns. These strategic financial moves, alongside strong operating results—such as full-year 2024 net income reaching $3.38 billion—demonstrate Southern Copper's resilience and growth. However, the company's recent trading price suggests it is above the estimations of fair value, indicating market optimism in its future prospects.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NYSE:SCCO.

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