The most recent trading session ended with Southern Copper (SCCO) standing at $93.16, reflecting a +0.89% shift from the previouse trading day's closing. This change lagged the S&P 500's 2.05% gain on the day. Elsewhere, the Dow saw an upswing of 1.78%, while the tech-heavy Nasdaq appreciated by 2.47%.
The the stock of miner has fallen by 1.58% in the past month, lagging the Basic Materials sector's gain of 2.82% and the S&P 500's gain of 5.21%.
Market participants will be closely following the financial results of Southern Copper in its upcoming release. On that day, Southern Copper is projected to report earnings of $1.05 per share, which would represent a year-over-year decline of 13.93%. Meanwhile, our latest consensus estimate is calling for revenue of $2.9 billion, down 6.86% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.38 per share and a revenue of $11.88 billion, signifying shifts of +1.15% and +3.86%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Southern Copper. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.92% decrease. Currently, Southern Copper is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Southern Copper is presently being traded at a Forward P/E ratio of 21.07. This valuation marks a premium compared to its industry's average Forward P/E of 21.02.
Meanwhile, SCCO's PEG ratio is currently 2.23. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Mining - Non Ferrous industry was having an average PEG ratio of 0.77.
The Mining - Non Ferrous industry is part of the Basic Materials sector. At present, this industry carries a Zacks Industry Rank of 32, placing it within the top 13% of over 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.
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
Southern Copper Corporation (SCCO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
