Southern Copper (SCCO) closed the latest trading day at $98, indicating a +1.61% change from the previous session's end. The stock exceeded the S&P 500, which registered a gain of 0.75% for the day. On the other hand, the Dow registered a gain of 0.58%, and the technology-centric Nasdaq increased by 1%.
Shares of the miner witnessed a loss of 4.95% over the previous month, trailing the performance of the Basic Materials sector with its gain of 0.53% and the S&P 500's gain of 4.03%.
Investors will be eagerly watching for the performance of Southern Copper in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.06, showcasing a 34.18% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $2.81 billion, reflecting a 12.13% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.29 per share and revenue of $11.59 billion. These totals would mark changes of +37.94% and +17.09%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Southern Copper. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Southern Copper is holding a Zacks Rank of #4 (Sell) right now.
Valuation is also important, so investors should note that Southern Copper has a Forward P/E ratio of 22.47 right now. This indicates a premium in contrast to its industry's Forward P/E of 13.04.
Meanwhile, SCCO's PEG ratio is currently 1. 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. As the market closed yesterday, the Mining – Non Ferrous industry was having an average PEG ratio of 0.66.
The Mining – Non Ferrous industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 95, finds itself in the top 38% echelons of all 250+ industries.
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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Southern Copper Corporation (SCCO) : Free Stock Analysis Report
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