SCCO vs. TECK: Which Copper Stock Is the Stronger Pick Now?

Southern Copper Corporation SCCO and Teck Resources Limited TECK are two prominent diversified base metals miners with significant copper production. Both SCCO and TECK are gaining from the surge in commodity prices.

Copper prices are currently near $6.55 per pound, up 48.2% in a year, after hitting record highs above $6.80 in early August 2026. The upside is supported by tight global supply and strong demand. 

For investors seeking to ride this momentum, the question is: which stock offers better value? Let us examine the fundamentals, growth prospects and challenges for Southern Copper and Teck Resources.

The Case for SCCO

Phoenix, AZ-based Southern Copper engages in mining, exploring, smelting, and refining copper and other minerals. Southern Copper has the largest copper reserves in the industry and operates high-quality, world-class assets in investment-grade countries, such as Mexico and Peru. Backed by its constant commitment to increasing low-cost production and growth investments, the company is well-poised to continue delivering enhanced performance.  

SCCO delivered an adjusted EBITDA of a record $2.86 billion in the second quarter of 2026, marking a year-over-year upside of 59.5%. Southern Copper’s second-quarter revenues increased 40.6% to a record $4.29 billion. Net income attributable to SCCO also surged 71.6% year over year to a record $1.67 billion. The net income margin improved to 38.9% from 31.9% in the year-ago period.

However, SCCO’s total copper production decreased 3.6% in the second quarter of 2026 to 232,521 tons due to a decrease in production at the company’s Peruvian operations. While mined silver production fell 3.8%, zinc and molybdenum production fell 14.5% and 11%, respectively, in the same time frame. 

Despite the year-to-date fall in production, the company has slightly hiked its 2026 copper production outlook to 917,000 tons from the initially stated 910,000 tons. The figure, however, still implies a 5% year-over-year decline. The downside will be led by lower ore grades at the Cuajone and Peruvian mines. Nonetheless, Southern Copper maintains a strong long-term outlook with production expected to increase to 1.15 million tons by 2031, 1.476 million tons in 2032 and continue rising steadily to reach the above-mentioned 1.6-million-ton target by 2035.   

This trajectory highlights SCCO’s confidence in its robust and diversified project pipeline spanning Peru and Mexico. The key growth catalysts include the Tía María, Los Chancas and Michiquillay projects in Peru, along with El Pilar and El Arco in Mexico, all of which underpin SCCO’s long-term expansion pipeline.

The Case for TECK

Vancouver, Canada-based Teck Resources is committed to mining and mineral development with business units focused on copper and zinc. Teck Resources is a significant copper producer in the Americas, with four operating mines in Canada, Chile and Peru, and development projects in North and South America. Its main projects are Highland Valley Copper in Canada and Antamina, Quebrada Blanca (“QB”) and Carmen de Andacollo in South America. 

As part of its long-term growth strategy, Teck Resources has entered a merger agreement with Anglo American plc to form the Anglo Teck group. It will have more than 70% exposure to copper and is set to be among the top five global copper producers. The new company will consist of six world-class copper assets and premium iron ore and zinc operations with a combined annual copper production of 1.2 million tons. It is projected to grow 10% to 1.35 million tons by 2027. The combined company will also be one of the world's largest zinc producers. The deal is expected to yield $800 million in annual pre-tax synergies within four years of completion.

In the second quarter of 2026, Teck Resources’ adjusted EBITDA surged 204% year over year to CAD$2.2 billion ($1.59 billion), reflecting stronger realized pricing, higher volumes and increased by-product contribution. The Copper segment’s revenues surged 85% year over year, driven by higher copper prices and sales volumes. This pushed the company’s top line to $2.6 billion, marking a 78% year-over-year rise. 

However, the company's Red Dog production fell to 112,000 tons in the second quarter of 2026 from 136,600 tons a year earlier as grades declined in line with the mine plan. The 2026 zinc production guidance is 410-460 thousand tons, whereas it produced 565 thousand tons in 2025. Lower grades are expected through 2028 as the Qanaiyaq pit is expected to be depleted in 2026. 

Nonetheless, the company maintains its 2026 copper production guidance of 455-530 thousand tons, whereas it produced 453.5 thousand tons in 2025. This will be driven by higher output at QB, Highland Valley Copper and Antamina. The long-term outlook for copper is positive as demand is expected to grow, partly driven by electric vehicles, renewable energy and infrastructure investments. 

Teck Resources continues to advance projects toward sanction readiness while prioritizing Quebrada Blanca and the Highland Valley Copper Mine Life Extension. Highland Valley construction progressed in the second quarter of 2026, with detailed engineering about 95% complete and procurement nearly complete. The project is expected to extend mine life to 2046 and support average annual copper production of about 132,000 tonnes. 

Zafranal secured legal authorization in May 2026 to construct processing facilities, while work continues on permitting, land access and business-case improvements. San Nicolás received its land-use-change permit in July 2026, although additional permits remain necessary before construction. Detailed engineering and infrastructure work continues at San Nicolás. These factors improve project readiness and preserve a pathway for long-term copper growth, subject to disciplined capital allocation and final sanction decisions.

How Do Estimates Compare for SCCO & TECK?

The Zacks Consensus Estimate for Southern Copper’s 2026 sales is $16.86 billion, indicating a 25.6% year-over-year jump. The consensus mark for the year’s earnings is pegged at $7.61 per share, suggesting a rally of 45.2%. The Zacks Consensus Estimate for 2027 sales implies an 11.7% year-over-year dip. The same for earnings suggests a fall of 8.2%. Earnings estimates for 2026 have moved south over the past 60 days, while the same for 2027 have moved up. 

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The Zacks Consensus Estimate for TECK’s 2026 sales is $10.44 billion, indicating a 35.4% year-over-year jump. The consensus mark for the year’s earnings is pegged at $3.58 per share, suggesting a year-over-year surge of 62%. The Zacks Consensus Estimate for 2027 earnings suggests a fall of 15.9%. The estimates for 2026 and 2027 have been trending north over the past 60 days.

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SCCO & TECK: Price Performance & Valuation Comparisons

In the past six months, the SCCO stock has gained 0.4% and TECK has risen 15.5%.  

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SCCO is currently trading at a forward 12-month earnings multiple of 29.75X, higher than its five-year median. TECK is currently trading at a forward 12-month earnings multiple of 22.74X, higher than its five-year median.

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SCCO or TECK: Which Is the Better Pick?

SCCO is poised to benefit from higher metal prices and increased revenues. The company’s long-term growth remains solid. However, near-term production headwinds remain concerning. 

Teck Resources is also benefiting from a strong price environment and project pipeline expansion. The company’s long-term growth looks promising with the planned merger agreement with Anglo American plc to form the Anglo Teck group. Even though near-term zinc in concentrate production at Red Dog has been impacted by operational issues, it will be offset by long-life assets and growth projects.

Given these factors, TECK seems a better pick for investors than SCCO currently. A lower valuation and positive revisions to earnings estimates support our thesis. 

Both stocks currently have a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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