In the latest trading session, Southern Copper (SCCO) closed at $45.57, marking a +0.46% move from the previous day. This move outpaced the S&P 500's daily loss of 0.84%. At the same time, the Dow lost 0.36%, and the tech-heavy Nasdaq lost 0.15%.
Coming into today, shares of the miner had lost 7.86% in the past month. In that same time, the Basic Materials sector lost 6.82%, while the S&P 500 lost 10.24%.
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 $0.62 per share, which would represent a year-over-year decline of 44.64%. Our most recent consensus estimate is calling for quarterly revenue of $2.43 billion, down 9.17% from the year-ago period.
SCCO's full-year Zacks Consensus Estimates are calling for earnings of $2.88 per share and revenue of $10.07 billion. These results would represent year-over-year changes of -34.4% and -7.95%, respectively.
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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 has moved 2.04% lower. Southern Copper is currently sporting a Zacks Rank of #5 (Strong Sell).
Valuation is also important, so investors should note that Southern Copper has a Forward P/E ratio of 15.75 right now. This represents a premium compared to its industry's average Forward P/E of 9.86.
It is also worth noting that SCCO currently has a PEG ratio of 1.9. 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 1.11 as of yesterday's close.
The Mining - Non Ferrous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 230, putting it in the bottom 9% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Southern Copper Corporation (SCCO) : Free Stock Analysis Report
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