Southern Copper (SCCO) closed at $184.06 in the latest trading session, marking a -1.18% move from the prior day. This move lagged the S&P 500's daily gain of 1.16%. Meanwhile, the Dow experienced a rise of 1.21%, and the technology-dominated Nasdaq saw an increase of 1.18%.
Coming into today, shares of the miner had gained 25.83% in the past month. In that same time, the Basic Materials sector gained 8.74%, while the S&P 500 lost 0.42%.
The investment community will be closely monitoring the performance of Southern Copper in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $1.44, reflecting a 42.57% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $3.6 billion, reflecting a 29.28% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.3 per share and a revenue of $13.15 billion, signifying shifts of +22.4% and 0%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Southern Copper. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 1.01% rise in the Zacks Consensus EPS estimate. Southern Copper is currently a Zacks Rank #2 (Buy).
Digging into valuation, Southern Copper currently has a Forward P/E ratio of 29.81. For comparison, its industry has an average Forward P/E of 27.86, which means Southern Copper is trading at a premium to the group.
We can additionally observe that SCCO currently boasts a PEG ratio of 1.56. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Mining - Non Ferrous industry currently had an average PEG ratio of 0.71 as of yesterday's close.
The Mining - Non Ferrous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 16, which puts it in the top 7% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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