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

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In the latest trading session, Southern Copper (SCCO - Free Report) closed at $76.26, marking a -1.8% move from the previous day. This change lagged the S&P 500's 0.71% gain on the day. At the same time, the Dow added 0.27%, and the tech-heavy Nasdaq gained 0.15%.

Coming into today, shares of the miner had gained 12.89% in the past month. In that same time, the Basic Materials sector gained 11.17%, while the S&P 500 gained 3.76%.

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 $0.97, down 2.02% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.20 per share and revenue of $10.77 billion, which would represent changes of -4.33% and -1.55%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Southern Copper. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 4.39% higher within the past month. Southern Copper is currently sporting a Zacks Rank of #2 (Buy).

In terms of valuation, Southern Copper is currently trading at a Forward P/E ratio of 18.5. This valuation marks a premium compared to its industry's average Forward P/E of 10.68.

Investors should also note that SCCO has a PEG ratio of 2.41 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 0.47 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 212, which puts it in the bottom 17% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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