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Southern Copper (SCCO) Gains As Market Dips: What You Should Know

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Southern Copper (SCCO - Free Report) closed the most recent trading day at $76.60, moving +1.82% from the previous trading session. This change outpaced the S&P 500's 0.79% loss on the day. Elsewhere, the Dow lost 0.53%, while the tech-heavy Nasdaq lost 0.47%.

Coming into today, shares of the miner had gained 19.07% in the past month. In that same time, the Basic Materials sector gained 10.43%, while the S&P 500 lost 2.43%.

Investors will be hoping for strength from Southern Copper as it approaches its next earnings release. In that report, analysts expect Southern Copper to post earnings of $1 per share. This would mark year-over-year growth of 1.01%.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.02 per share and revenue of $10.41 billion, which would represent changes of -8.43% and -4.79%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Southern Copper. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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 0.58% higher. Southern Copper is currently a Zacks Rank #4 (Sell).

In terms of valuation, Southern Copper is currently trading at a Forward P/E ratio of 18.71. This represents a premium compared to its industry's average Forward P/E of 12.95.

Meanwhile, SCCO's PEG ratio is currently 2.43. 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 0.46 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 244, which puts it in the bottom 4% 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.

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