Southern Copper (SCCO) Stock Moves -1.32%: What You Should Know
In the latest trading session, Southern Copper (SCCO) closed at $72.36, marking a -1.32% move from the previous day. This change was narrower than the S&P 500's daily loss of 1.45%. At the same time, the Dow lost 1.07%, and the tech-heavy Nasdaq lost 3.06%.
Coming into today, shares of the miner had lost 1.52% in the past month. In that same time, the Basic Materials sector lost 2.83%, while the S&P 500 lost 3.83%.
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 $1.07 per share. This would mark year-over-year growth of 4.9%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.6 billion, down 5.8% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.40 per share and revenue of $9.81 billion, which would represent changes of -0.29% and -2.36%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Southern Copper. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
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 5.6% higher. Southern Copper currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Southern Copper is currently trading at a Forward P/E ratio of 21.59. Its industry sports an average Forward P/E of 16.2, so we one might conclude that Southern Copper is trading at a premium comparatively.
Also, we should mention that SCCO has a PEG ratio of 3.95. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Mining - Non Ferrous was holding an average PEG ratio of 3.95 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 189, putting it in the bottom 25% 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.
To follow SCCO in the coming trading sessions, be sure to utilize Zacks.com.
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Southern Copper Corporation (SCCO) : Free Stock Analysis Report
