In the latest trading session, Southern Copper (SCCO) closed at $86.83, marking a -0.96% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.17%. Meanwhile, the Dow lost 0.39%, and the Nasdaq, a tech-heavy index, lost 0.05%.
Prior to today's trading, shares of the miner had lost 10.43% over the past month. This has lagged the Basic Materials sector's loss of 4.41% and the S&P 500's loss of 3.94% in that time.
Investors will be eagerly watching for the performance of Southern Copper in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.13, showcasing a 20.21% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $2.87 billion, indicating a 10.41% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.60 per share and revenue of $11.85 billion, which would represent changes of +6.24% and +3.64%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Southern Copper. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.16% lower within the past month. Currently, Southern Copper is carrying a Zacks Rank of #3 (Hold).
Investors should also note Southern Copper's current valuation metrics, including its Forward P/E ratio of 19.06. This expresses a premium compared to the average Forward P/E of 17.14 of its industry.
One should further note that SCCO currently holds a PEG ratio of 2.01. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Mining - Non Ferrous stocks are, on average, holding a PEG ratio of 0.64 based on yesterday's closing prices.
The Mining - Non Ferrous industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 201, finds itself in the bottom 19% 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.
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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