Southern Copper (SCCO) closed at $196.16 in the latest trading session, marking a +2.9% move from the prior day. The stock's performance was ahead of the S&P 500's daily loss of 0.21%. Meanwhile, the Dow experienced a drop of 0.07%, and the technology-dominated Nasdaq saw an increase of 0.01%.
Shares of the miner have depreciated by 8.47% over the course of the past month, underperforming the Basic Materials sector's loss of 2.21%, and the S&P 500's loss of 2.26%.
Analysts and investors alike will be keeping a close eye on the performance of Southern Copper in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.88, marking a 57.98% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $3.87 billion, indicating a 23.93% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $6.57 per share and a revenue of $14.56 billion, demonstrating changes of +25.38% and +8.5%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Southern Copper. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 3.1% rise in the Zacks Consensus EPS estimate. Southern Copper is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, Southern Copper is at present trading with a Forward P/E ratio of 29.02. This indicates a premium in contrast to its industry's Forward P/E of 24.22.
One should further note that SCCO currently holds a PEG ratio of 1.97. 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 Mining - Non Ferrous industry had an average PEG ratio of 1.97 as trading concluded yesterday.
The Mining - Non Ferrous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 88, putting it in the top 36% 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.
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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