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

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In the latest trading session, Southern Copper (SCCO) closed at $47.82, marking a +1.83% move from the previous day. This change outpaced the S&P 500's 0.84% loss on the day. Elsewhere, the Dow lost 0.69%, while the tech-heavy Nasdaq lost 0.05%.

Heading into today, shares of the miner had lost 15.31% over the past month, outpacing the Basic Materials sector's loss of 19.71% and lagging the S&P 500's gain of 2.02% in that time.

Investors will be hoping for strength from Southern Copper as it approaches its next earnings release. On that day, Southern Copper is projected to report earnings of $0.96 per share, which would represent a year-over-year decline of 20.66%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.78 billion, down 4% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.79 per share and revenue of $11.27 billion, which would represent changes of -13.67% and +3.05%, respectively, from the prior year.

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

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 8.3% lower. Southern Copper is currently sporting a Zacks Rank of #4 (Sell).

In terms of valuation, Southern Copper is currently trading at a Forward P/E ratio of 12.38. This valuation marks a premium compared to its industry's average Forward P/E of 7.14.

Meanwhile, SCCO's PEG ratio is currently 1.5. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Mining - Non Ferrous industry currently had an average PEG ratio of 0.67 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 196, which puts it in the bottom 23% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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