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Southern Copper (SCCO) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Southern Copper (SCCO - Free Report) closed at $60.87, marking a -1.74% move from the previous day. This change lagged the S&P 500's 1.59% loss on the day.

Coming into today, shares of the miner had gained 4.15% in the past month. In that same time, the Basic Materials sector lost 1.03%, while the S&P 500 gained 2.53%.

SCCO will be looking to display strength as it nears its next earnings release. In that report, analysts expect SCCO to post earnings of $1.09 per share. This would mark 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.

SCCO's full-year Zacks Consensus Estimates are calling for earnings of $4.33 per share and revenue of $10.42 billion. These results would represent year-over-year changes of +113.3% and +30.45%, respectively.

Investors might also notice recent changes to analyst estimates for SCCO. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.89% lower within the past month. SCCO is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, SCCO currently has a Forward P/E ratio of 14.32. For comparison, its industry has an average Forward P/E of 14.39, which means SCCO is trading at a discount to the group.

Investors should also note that SCCO has a PEG ratio of 0.76 right now. 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. The Mining - Non Ferrous was holding an average PEG ratio of 0.57 at yesterday's closing price.

The Mining - Non Ferrous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 97, which puts it in the top 39% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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