Southern Copper (SCCO) ended the recent trading session at $206.23, demonstrating a -5.77% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.94% for the day. Meanwhile, the Dow lost 0.83%, and the Nasdaq, a tech-heavy index, lost 1.02%.
The stock of miner has risen by 13.51% in the past month, leading the Basic Materials sector's gain of 12.9% and the S&P 500's loss of 1.3%.
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 $1.88, reflecting a 57.98% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $3.87 billion, indicating a 23.93% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.57 per share and revenue of $14.56 billion, which would represent changes of +25.38% and +8.5%, respectively, from the prior year.
Any recent changes to analyst estimates for Southern Copper should also be noted by investors. 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 demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.1% higher. At present, Southern Copper boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Southern Copper is currently trading at a Forward P/E ratio of 33.31. This represents a premium compared to its industry average Forward P/E of 29.74.
One should further note that SCCO currently holds a PEG ratio of 2.26. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Mining - Non Ferrous industry had an average PEG ratio of 2.26.
The Mining - Non Ferrous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 90, which puts it in the top 37% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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