The latest trading session saw Southern Copper (SCCO) ending at $93.01, denoting a +1.12% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a gain of 1.09% for the day. At the same time, the Dow added 1.18%, and the tech-heavy Nasdaq gained 1.03%.
The miner's shares have seen a decrease of 8.64% over the last month, surpassing the Basic Materials sector's loss of 8.81% and falling behind the S&P 500's loss of 0.71%.
The upcoming earnings release of Southern Copper will be of great interest to investors. The company's earnings per share (EPS) are projected to be $1.06, reflecting an 85.96% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.85 billion, up 24.24% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.45 per share and revenue of $11.79 billion. These totals would mark changes of +43.09% and +19.11%, respectively, from last year.
Any recent changes to analyst estimates for Southern Copper should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.71% decrease. Right now, Southern Copper possesses a Zacks Rank of #3 (Hold).
From a valuation perspective, Southern Copper is currently exchanging hands at a Forward P/E ratio of 20.68. Its industry sports an average Forward P/E of 19.3, so one might conclude that Southern Copper is trading at a premium comparatively.
It is also worth noting that SCCO currently has a PEG ratio of 1.44. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Mining – Non Ferrous industry held an average PEG ratio of 0.92.
The Mining – Non Ferrous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 135, putting it in the bottom 47% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Southern Copper Corporation (SCCO) : Free Stock Analysis Report
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