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Southern Copper (SCCO) Gains As Market Dips: What You Should Know

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Southern Copper (SCCO) closed at $51.59 in the latest trading session, marking a +0.17% move from the prior day. This change outpaced the S&P 500's 0.3% loss on the day. Elsewhere, the Dow lost 0.2%, while the tech-heavy Nasdaq lost 0.11%.

Heading into today, shares of the miner had lost 17.94% over the past month, lagging the Basic Materials sector's loss of 12.25% and the S&P 500's loss of 0.62% in that time.

Southern Copper will be looking to display strength as it nears its next earnings release. In that report, analysts expect Southern Copper to post earnings of $1.08 per share. This would mark a year-over-year decline of 10.74%. Our most recent consensus estimate is calling for quarterly revenue of $2.82 billion, down 2.68% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.14 per share and revenue of $11.11 billion, which would represent changes of -5.69% and +1.63%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Southern Copper. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Southern Copper is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Southern Copper is currently trading at a Forward P/E ratio of 12.45. This represents a premium compared to its industry's average Forward P/E of 6.59.

Meanwhile, SCCO's PEG ratio is currently 1.51. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SCCO's industry had an average PEG ratio of 0.89 as of yesterday's close.

The Mining - Non Ferrous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 47, which puts it in the top 19% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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