Southern Copper (SCCO) Stock Sinks As Market Gains: What You Should Know
Southern Copper (SCCO) closed the most recent trading day at $74.80, moving -0.7% from the previous trading session. This change lagged the S&P 500's 1.1% gain on the day. Meanwhile, the Dow gained 0.61%, and the Nasdaq, a tech-heavy index, added 6.59%.
Coming into today, shares of the miner had gained 23.37% in the past month. In that same time, the Basic Materials sector gained 9.24%, while the S&P 500 gained 4.58%.
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 $0.82 per share, which would represent a year-over-year decline of 24.07%. Meanwhile, our latest consensus estimate is calling for revenue of $2.53 billion, down 10.49% from the prior-year quarter.
Investors might also notice 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. 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 6.57% higher. Southern Copper is holding a Zacks Rank of #1 (Strong Buy) right now.
Investors should also note Southern Copper's current valuation metrics, including its Forward P/E ratio of 23.23. For comparison, its industry has an average Forward P/E of 16.73, which means Southern Copper is trading at a premium to the group.
It is also worth noting that SCCO currently has a PEG ratio of 4.25. 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 1.83 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 183, which puts it in the bottom 28% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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
