The latest trading session saw Southern Copper (SCCO) ending at $114.59, denoting a -1.5% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily loss of 0.88%. Meanwhile, the Dow gained 0.08%, and the Nasdaq, a tech-heavy index, lost 1.95%.
Prior to today's trading, shares of the miner had gained 7.65% over the past month. This has outpaced the Basic Materials sector's loss of 2.77% and the S&P 500's gain of 5.11% in that time.
The investment community will be paying close attention to the earnings performance of Southern Copper in its upcoming release. On that day, Southern Copper is projected to report earnings of $1.16 per share, which would represent year-over-year growth of 65.71%. Meanwhile, our latest consensus estimate is calling for revenue of $2.93 billion, up 27.14% from the prior-year quarter.
SCCO's full-year Zacks Consensus Estimates are calling for earnings of $4.33 per share and revenue of $11.46 billion. These results would represent year-over-year changes of +39.23% and +15.77%, respectively.
Investors might also notice recent changes to analyst estimates for Southern Copper. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 5.43% upward. Southern Copper is currently a Zacks Rank #2 (Buy).
In terms of valuation, Southern Copper is presently being traded at a Forward P/E ratio of 26.87. Its industry sports an average Forward P/E of 16.12, so one might conclude that Southern Copper is trading at a premium comparatively.
Meanwhile, SCCO's PEG ratio is currently 1.18. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Mining – Non Ferrous industry had an average PEG ratio of 0.79 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 66, finds itself in the top 27% echelons of all 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.
To follow SCCO in the coming trading sessions, be sure to utilize Zacks.com.
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Southern Copper Corporation (SCCO) : Free Stock Analysis Report
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