Southern Copper (SCCO) closed at $96.45 in the latest trading session, marking a +1.78% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 0.94%. Meanwhile, the Dow experienced a rise of 0.75%, and the technology-dominated Nasdaq saw an increase of 1.52%.
The stock of miner has risen by 4.37% in the past month, leading the Basic Materials sector's gain of 3.31% and the S&P 500's gain of 1.67%.
The upcoming earnings release of Southern Copper will be of great interest to investors. The company is forecasted to report an EPS of $1.05, showcasing a 13.93% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.9 billion, indicating a 6.86% decrease compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.38 per share and revenue of $11.87 billion, indicating changes of +1.15% and +3.86%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Southern Copper. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. At present, Southern Copper boasts a Zacks Rank of #4 (Sell).
From a valuation perspective, Southern Copper is currently exchanging hands at a Forward P/E ratio of 21.63. This expresses a discount compared to the average Forward P/E of 23.25 of its industry.
Also, we should mention that SCCO has a PEG ratio of 2.28. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Mining - Non Ferrous industry had an average PEG ratio of 0.89 as trading concluded yesterday.
The Mining - Non Ferrous industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 146, finds itself in the bottom 41% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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
