Southern Copper Corp.

Southern Copper Corp. (PCU - Snapshot Report) has doubled in the last 6 months as investors choose to focus on the company's bullish next-year projection.

Company Description

Southern Copper Corp. produces and sells copper and various metals like zinc, lead and silver worldwide. The company was founded in 1952 and has a market cap of $26 billion.

Copper is frequently referred to as the "smart metal" because of its strong correlation to underlying economic conditions. Shares of PCU reflect that dynamic, bottoming out late last year 6 months ahead of the market.

Second-Quarter Results

The company's recent second-quarter results, reported on July 21 weren't great, but that didn't slow the company's upward trajectory as investors chose to look forward. Sales were down sharply from last year to $824.5 million. Earnings also came in a bit flat at 21 cents per share, short of the Zacks Consensus Estimate by about 3 cents.

Estiates Up Big

The disappointing results didn't spook investors, who chose to focus on the economic recovery and rising estimates. In just the last 90 days the current-year estimate is up 28 cents to 93 cents per share, while the next-year estimate has added 56 cents and risen to $1.79, a bullish 92% growth projection.

Valuation

Based upon the bullish next-year estimate, shares are trading at 17X, a small premium to the markets multiple based upon next-year earnings.

The Chart

Shares of CPU have been trending higher since bottoming out in early November of last year below $9. Since then, this stock has topped off above $30, an impressive gain of more than 200%. Take a look at the impressive run below.

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