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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 $63.97 in the latest trading session, marking a -0.99% move from the prior day. This change lagged the S&P 500's 0.54% loss on the day. Meanwhile, the Dow lost 0.02%, and the Nasdaq, a tech-heavy index, lost 0.12%.

Heading into today, shares of the miner had gained 6.13% over the past month, outpacing the Basic Materials sector's loss of 2.26% and the S&P 500's loss of 7.87% in that time.

Wall Street will be looking for positivity from Southern Copper as it approaches its next earnings report date. The company is expected to report EPS of $1.12, up 47.37% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.61 billion, up 10.84% from the year-ago period.

Any recent changes to analyst estimates for Southern Copper should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.92% lower within the past month. Southern Copper is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Southern Copper currently has a Forward P/E ratio of 16.17. For comparison, its industry has an average Forward P/E of 9.37, which means Southern Copper is trading at a premium to the group.

Investors should also note that SCCO has a PEG ratio of 1.99 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SCCO's industry had an average PEG ratio of 0.34 as of yesterday's close.

The Mining - Non Ferrous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 89, putting it in the top 35% 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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