Southern Copper (SCCO) closed the most recent trading day at $143.47, moving -1.38% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.74%. At the same time, the Dow lost 0.63%, and the tech-heavy Nasdaq lost 0.76%.
Prior to today's trading, shares of the miner had gained 7.84% outpaced the Basic Materials sector's gain of 4.41% and the S&P 500's gain of 0.79%.
The investment community will be paying close attention to the earnings performance of Southern Copper in its upcoming release. The company is predicted to post an EPS of $1.46, indicating a 44.55% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $3.62 billion, reflecting a 30.11% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.27 per share and revenue of $13.17 billion. These totals would mark changes of +21.71% and +15.21%, respectively, from last year.
Any recent changes to analyst estimates for Southern Copper should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.61% higher. As of now, Southern Copper holds a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Southern Copper currently has a Forward P/E ratio of 27.59. This valuation marks a discount compared to its industry average Forward P/E of 32.3.
It's also important to note that SCCO currently trades at a PEG ratio of 1.34. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Mining - Non Ferrous industry stood at 1.16 at the close of the market yesterday.
The Mining - Non Ferrous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 108, which puts it in the top 44% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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