Southern Copper (SCCO) closed at $99.91 in the latest trading session, marking a -3.37% move from the prior day. The stock's change was less than the S&P 500's daily gain of 0.27%. At the same time, the Dow added 0.43%, and the tech-heavy Nasdaq gained 0.37%.
Shares of the miner have appreciated by 7.56% over the course of the past month, outperforming the Basic Materials sector's gain of 5.86%, and the S&P 500's gain of 1.85%.
Investors will be eagerly watching for the performance of Southern Copper in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.11, indicating a 3.48% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $3.09 billion, indicating a 5.28% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $4.84 per share and a revenue of $12.29 billion, demonstrating changes of +11.78% and +7.52%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Southern Copper. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.76% higher within the past month. At present, Southern Copper boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Southern Copper is currently trading at a Forward P/E ratio of 21.35. For comparison, its industry has an average Forward P/E of 23.94, which means Southern Copper is trading at a discount to the group.
One should further note that SCCO currently holds a PEG ratio of 1.47. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Mining - Non Ferrous industry was having an average PEG ratio of 0.83.
The Mining - Non Ferrous industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 174, finds itself in the bottom 30% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Southern Copper Corporation (SCCO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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