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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 $59.54, marking a -1.52% move from the previous day. This move lagged the S&P 500's daily loss of 0.91%. Meanwhile, the Dow lost 0.89%, and the Nasdaq, a tech-heavy index, added 0.4%.

Coming into today, shares of the miner had lost 3.2% in the past month. In that same time, the Basic Materials sector lost 0.72%, while the S&P 500 gained 1.55%.

Southern Copper will be looking to display strength as it nears its next earnings release. In that report, analysts expect Southern Copper to post earnings of $1.18 per share. This would mark year-over-year growth of 55.26%. Meanwhile, our latest consensus estimate is calling for revenue of $2.61 billion, up 10.84% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.49 per share and revenue of $10.94 billion, which would represent changes of +121.18% and +36.97%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Southern Copper. Recent revisions tend to reflect the latest near-term business trends. 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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 1.89% higher. Southern Copper is currently a Zacks Rank #3 (Hold).

In terms of valuation, Southern Copper is currently trading at a Forward P/E ratio of 13.45. For comparison, its industry has an average Forward P/E of 12.55, which means Southern Copper is trading at a premium to the group.

Meanwhile, SCCO's PEG ratio is currently 0.84. 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. Mining - Non Ferrous stocks are, on average, holding a PEG ratio of 0.44 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 120, which puts it in the top 48% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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