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

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Southern Copper (SCCO - Free Report) closed at $57.42 in the latest trading session, marking a -1.64% move from the prior day. This change lagged the S&P 500's 1.14% loss on the day. Meanwhile, the Dow lost 1.23%, and the Nasdaq, a tech-heavy index, lost 0.36%.

Coming into today, shares of the miner had lost 2.18% in the past month. In that same time, the Basic Materials sector lost 1.24%, while the S&P 500 lost 1.37%.

Wall Street will be looking for positivity from Southern Copper as it approaches its next earnings report date. On that day, Southern Copper is projected to report earnings of $1.18 per share, which would represent year-over-year growth of 55.26%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.61 billion, up 10.84% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.49 per share and revenue of $10.94 billion. These totals would mark changes of +121.18% and +36.97%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Southern Copper. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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 sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Southern Copper has a Forward P/E ratio of 12.99 right now. This valuation marks a premium compared to its industry's average Forward P/E of 10.45.

We can also see that SCCO currently has a PEG ratio of 0.81. 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 0.43 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 182, which puts it in the bottom 29% 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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