Southern Copper (SCCO) Gains As Market Dips: What You Should Know
Southern Copper (SCCO) closed the most recent trading day at $75.30, moving +0.57% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.43%. Elsewhere, the Dow lost 0.34%, while the tech-heavy Nasdaq lost 0.62%.
Coming into today, shares of the miner had gained 10.4% in the past month. In that same time, the Basic Materials sector gained 4.32%, while the S&P 500 lost 6.57%.
Investors will be hoping for strength from Southern Copper as it approaches its next earnings release. The company is expected to report EPS of $1, up 1.01% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.02 per share and revenue of $10.41 billion, which would represent changes of -8.43% and -4.79%, respectively, from the prior year.
Any recent changes to analyst estimates for Southern Copper should also be noted by investors. Recent revisions tend to reflect the latest near-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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.25% higher. Southern Copper is currently a Zacks Rank #4 (Sell).
Investors should also note Southern Copper's current valuation metrics, including its Forward P/E ratio of 18.62. This valuation marks a premium compared to its industry's average Forward P/E of 12.73.
Also, we should mention that SCCO has a PEG ratio of 2.42. 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. The Mining - Non Ferrous was holding an average PEG ratio of 0.44 at yesterday's closing price.
The Mining - Non Ferrous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 229, putting it in the bottom 10% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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