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Southern Copper (SCCO) Gains But Lags Market: What You Should Know

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Southern Copper (SCCO - Free Report) closed the most recent trading day at $57.14, moving +0.69% from the previous trading session. This move lagged the S&P 500's daily gain of 1.21%.

Coming into today, shares of the miner had lost 9.1% in the past month. In that same time, the Basic Materials sector lost 3.02%, while the S&P 500 lost 0.9%.

SCCO will be looking to display strength as it nears its next earnings release. On that day, SCCO is projected to report earnings of $1.09 per share, which would represent year-over-year growth of 67.69%. Meanwhile, our latest consensus estimate is calling for revenue of $2.7 billion, up 27.01% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.42 per share and revenue of $10.97 billion, which would represent changes of +117.73% and +37.36%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for SCCO. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 4.95% lower within the past month. SCCO currently has a Zacks Rank of #3 (Hold).

Digging into valuation, SCCO currently has a Forward P/E ratio of 12.84. This valuation marks a discount compared to its industry's average Forward P/E of 13.51.

Meanwhile, SCCO's PEG ratio is currently 0.76. 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 Mining - Non Ferrous was holding an average PEG ratio of 0.76 at yesterday's closing price.

The Mining - Non Ferrous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 108, putting it in the top 43% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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