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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 at $65.16 in the latest trading session, marking a +1.99% move from the prior day. This change outpaced the S&P 500's 0.69% gain on the day. At the same time, the Dow added 0.78%, and the tech-heavy Nasdaq gained 0.28%.

Prior to today's trading, shares of the miner had gained 4.04% over the past month. This has outpaced the Basic Materials sector's loss of 4.94% and the S&P 500's loss of 5.29% in that time.

Wall Street will be looking for positivity from Southern Copper as it approaches its next earnings report date. In that report, analysts expect Southern Copper to post earnings of $1.12 per share. This would mark year-over-year growth of 47.37%. Our most recent consensus estimate is calling for quarterly revenue of $2.61 billion, up 10.84% from the year-ago period.

It is also important to note the recent changes to analyst estimates for Southern Copper. These revisions help to show the ever-changing nature of near-term business trends. 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.

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. Within the past 30 days, our consensus EPS projection has moved 2.92% lower. Southern Copper is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Southern Copper's current valuation metrics, including its Forward P/E ratio of 15.99. For comparison, its industry has an average Forward P/E of 9.38, which means Southern Copper is trading at a premium to the group.

Investors should also note that SCCO has a PEG ratio of 1.97 right now. 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. SCCO's industry had an average PEG ratio of 0.33 as of yesterday's close.

The Mining - Non Ferrous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 84, which puts it in the top 33% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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