In the latest trading session, Southern Copper (SCCO) closed at $198.18, marking a +1.71% move from the previous day. This move outpaced the S&P 500's daily loss of 0.01%. At the same time, the Dow added 0.03%, and the tech-heavy Nasdaq gained 0.17%.
Coming into today, shares of the miner had gained 33.93% in the past month. In that same time, the Basic Materials sector gained 11%, while the S&P 500 gained 0.78%.
Analysts and investors alike will be keeping a close eye on the performance of Southern Copper in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.44, reflecting a 42.57% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $3.6 billion, showing a 29.28% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.22 per share and a revenue of $13.15 billion, indicating changes of +20.55% and 0%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for Southern Copper. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.01% upward. As of now, Southern Copper holds a Zacks Rank of #3 (Hold).
In terms of valuation, Southern Copper is currently trading at a Forward P/E ratio of 31.19. This indicates a premium in contrast to its industry's Forward P/E of 29.48.
We can also see that SCCO currently has a PEG ratio of 1.63. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. SCCO's industry had an average PEG ratio of 0.76 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 60, which puts it in the top 25% of all 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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