Southern Copper (SCCO) ended the recent trading session at $128.37, demonstrating a +1.14% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.58%. Meanwhile, the Dow experienced a rise of 0.31%, and the technology-dominated Nasdaq saw an increase of 0.89%.
Shares of the miner have appreciated by 6.21% over the course of the past month, outperforming the Basic Materials sector's loss of 4.14%, and the S&P 500's gain of 0.16%.
The upcoming earnings release of Southern Copper will be of great interest to investors. In that report, analysts expect Southern Copper to post earnings of $1.16 per share. This would mark year-over-year growth of 0.87%. Meanwhile, the latest consensus estimate predicts the revenue to be $3.04 billion, indicating a 3.72% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $4.87 per share and a revenue of $12.45 billion, demonstrating changes of +12.47% and +8.9%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Southern Copper. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the past month, the Zacks Consensus EPS estimate has shifted 3.13% upward. Southern Copper is currently a Zacks Rank #2 (Buy).
Looking at its valuation, Southern Copper is holding a Forward P/E ratio of 26.06. This signifies a discount in comparison to the average Forward P/E of 26.36 for its industry.
Also, we should mention that SCCO has a PEG ratio of 1.22. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SCCO's industry had an average PEG ratio of 0.98 as of yesterday's close.
The Mining - Non Ferrous industry is part of the Basic Materials sector. At present, this industry carries a Zacks Industry Rank of 18, placing it within the top 8% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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