In the latest trading session, Southern Copper (SCCO) closed at $101.17, marking a -1.31% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.52% for the day. Meanwhile, the Dow experienced a rise of 0.63%, and the technology-dominated Nasdaq saw an increase of 0.48%.
Coming into today, shares of the miner had gained 12.76% in the past month. In that same time, the Basic Materials sector gained 2.15%, while the S&P 500 gained 4.27%.
Analysts and investors alike will be keeping a close eye on the performance of Southern Copper in its upcoming earnings disclosure. The company is expected to report EPS of $1.05, down 13.93% from the prior-year quarter. 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.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.59 per share and a revenue of $12.06 billion, representing changes of +6% and +5.52%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Southern Copper. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 4.66% higher. Currently, Southern Copper is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Southern Copper is currently trading at a Forward P/E ratio of 22.35. This expresses a discount compared to the average Forward P/E of 23.43 of its industry.
We can additionally observe that SCCO currently boasts a PEG ratio of 2.38. 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. By the end of yesterday's trading, the Mining - Non Ferrous industry had an average PEG ratio of 0.88.
The Mining - Non Ferrous industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 154, positioning it in the bottom 38% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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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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