Southern Copper (SCCO) Moves 4.9% Higher: Will This Strength Last?

Southern Copper (SCCO) shares ended the last trading session 4.9% higher at $207.93. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 38.1% gain over the past four weeks.

Shares of Southern Copper have gained on the back of higher copper prices. Copper has increased 40.8% in a year’s time and is currently trading near a record high of $6 per pound despite amid tightening supply concerns.

This miner is expected to post quarterly earnings of $1.46 per share in its upcoming report, which represents a year-over-year change of +44.6%. Revenues are expected to be $3.62 billion, up 30% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Southern Copper, the consensus EPS estimate for the quarter has been revised 1.3% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on SCCO going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Southern Copper belongs to the Zacks Mining - Non Ferrous industry. Another stock from the same industry, Coeur Mining (CDE), closed the last trading session 4.1% lower at $24.57. Over the past month, CDE has returned 43.7%.

For Coeur Mining, the consensus EPS estimate for the upcoming report has changed -15.9% over the past month to $0.33. This represents a change of +200% from what the company reported a year ago. Coeur Mining currently has a Zacks Rank of #1 (Strong Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research