Southern Copper (SCCO) ended the recent trading session at $104.51, demonstrating a -1.28% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.79% for the day. Meanwhile, the Dow lost 0.94%, and the Nasdaq, a tech-heavy index, lost 0.92%.
Coming into today, shares of the miner had gained 10.69% in the past month. In that same time, the Basic Materials sector gained 4.52%, while the S&P 500 gained 5.22%.
The investment community will be paying close attention to the earnings performance of Southern Copper in its upcoming release. The company is expected to report EPS of $1.09, down 10.66% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.9 billion, down 6.86% from the year-ago period.
SCCO's full-year Zacks Consensus Estimates are calling for earnings of $4.75 per share and revenue of $12.21 billion. These results would represent year-over-year changes of +9.7% and +6.82%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Southern Copper. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, the Zacks Consensus EPS estimate has shifted 8.35% upward. Southern Copper is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Southern Copper's current valuation metrics, including its Forward P/E ratio of 22.3. This expresses a discount compared to the average Forward P/E of 23.25 of its industry.
It's also important to note that SCCO currently trades at a PEG ratio of 2.37. 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. The average PEG ratio for the Mining - Non Ferrous industry stood at 0.89 at the close of the market yesterday.
The Mining - Non Ferrous industry is part of the Basic Materials sector. With its current Zacks Industry Rank of 69, this industry ranks in the top 28% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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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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