Southern Copper (SCCO) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Southern Copper (SCCO) closed at $64.89, marking a +1.26% move from the previous day. This change outpaced the S&P 500's 0.95% gain on the day. Meanwhile, the Dow gained 0.8%, and the Nasdaq, a tech-heavy index, lost 0.28%.
Heading into today, shares of the miner had gained 9.76% over the past month, outpacing the Basic Materials sector's gain of 3.51% and the S&P 500's gain of 0.1% 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%. Meanwhile, our latest consensus estimate is calling for revenue of $2.82 billion, down 2.68% from the prior-year quarter.
SCCO's full-year Zacks Consensus Estimates are calling for earnings of $4.14 per share and revenue of $11.11 billion. These results would represent year-over-year changes of -5.69% and +1.63%, 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 2.36% lower. Southern Copper currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Southern Copper is holding a Forward P/E ratio of 15.49. This valuation marks a premium compared to its industry's average Forward P/E of 8.06.
It is also worth noting that SCCO currently has a PEG ratio of 1.87. 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 1.12 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 80, putting it in the top 32% 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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