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Southern Copper (SCCO) Outpaces Stock Market Gains: What You Should Know

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Southern Copper (SCCO - Free Report) closed the most recent trading day at $68.86, moving +0.91% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.02%.

Prior to today's trading, shares of the miner had lost 15.18% over the past month. This has lagged the Basic Materials sector's loss of 1.59% and the S&P 500's gain of 0.04% in that time.

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 220.59%. Our most recent consensus estimate is calling for quarterly revenue of $2.55 billion, up 42.62% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.41 per share and revenue of $10.27 billion. These totals would mark changes of +117.24% and +28.65%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for SCCO. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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 10.43% higher within the past month. SCCO is currently a Zacks Rank #1 (Strong Buy).

Valuation is also important, so investors should note that SCCO has a Forward P/E ratio of 15.47 right now. Its industry sports an average Forward P/E of 16.51, so we one might conclude that SCCO is trading at a discount comparatively.

Meanwhile, SCCO's PEG ratio is currently 0.83. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Mining - Non Ferrous stocks are, on average, holding a PEG ratio of 0.65 based on yesterday's closing prices.

The Mining - Non Ferrous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 113, which puts it in the top 45% 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.

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