Southern Copper (SCCO) closed the most recent trading day at $108.52, moving -1.29% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.13%. Meanwhile, the Dow lost 0.27%, and the Nasdaq, a tech-heavy index, lost 0.07%.
The miner's shares have seen an increase of 14.66% over the last month, surpassing the Basic Materials sector's gain of 6.19% and the S&P 500's gain of 2.71%.
Investors will be eagerly watching for the performance of Southern Copper in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.11, marking a 3.48% fall compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $3.09 billion, indicating a 5.28% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.72 per share and revenue of $12.29 billion, indicating changes of +9.01% and +7.52%, respectively, compared to the previous 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. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.43% increase. At present, Southern Copper boasts a Zacks Rank of #3 (Hold).
Digging into valuation, Southern Copper currently has a Forward P/E ratio of 23.28. This indicates a discount in contrast to its industry's Forward P/E of 24.88.
One should further note that SCCO currently holds a PEG ratio of 1.62. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Mining - Non Ferrous was holding an average PEG ratio of 0.83 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 176, putting it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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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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