Southern Copper (SCCO) Soars 8.4%: Is Further Upside Left in the Stock?

Southern Copper (SCCO) shares ended the last trading session 8.4% higher at $119.5. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 12.8% gain over the past four weeks.

The company’s shares have gained on the back of higher copper prices. Copper futures climbed 3.77% to a near two-month high of $4.84 per pound after Freeport-McMoRan Inc. FCX declared force majeure at its Grasburg mine in Indonesia. Mining operations have been temporarily suspended since Sept. 8 following the sudden inflow of approximately 800,000 metric tons of wet material though the mine. Freeport now expects third quarter 2025 sales to be 4% lower for copper and 6% lower for gold than its previous estimates. Notably, the Grasberg minerals district in Indonesia is one of the world’s largest copper and gold deposits. Hudbay Minerals HBM recently announced the temporary suspension of operations at its Constancia mine in Peru due to protests. Even though the company said that this will not impact its 2025 output, it has led to supply concerns, boosting prices. 

This miner is expected to post quarterly earnings of $1.11 per share in its upcoming report, which represents a year-over-year change of -3.5%. Revenues are expected to be $3.09 billion, up 5.3% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Southern Copper, the consensus EPS estimate for the quarter has been revised 11.1% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on SCCO going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Southern Copper belongs to the Zacks Mining - Non Ferrous industry. Another stock from the same industry, Energy Fuels (UUUU), closed the last trading session 1.2% higher at $16.87. Over the past month, UUUU has returned 35.4%.

Energy Fuels' consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.08. Compared to the company's year-ago EPS, this represents a change of -14.3%. Energy Fuels currently boasts a Zacks Rank of #3 (Hold).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research