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

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Southern Copper (SCCO - Free Report) closed the most recent trading day at $72.68, moving -0.74% from the previous trading session. This change lagged the S&P 500's daily gain of 1.61%. Elsewhere, the Dow gained 1.45%, while the tech-heavy Nasdaq added 0.05%.

Heading into today, shares of the miner had lost 5% over the past month, lagging the Basic Materials sector's gain of 5.16% and the S&P 500's loss of 1.42% in that time.

Southern Copper will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.98, down 1.01% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.68 billion, up 5.93% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.16 per share and revenue of $11.09 billion, which would represent changes of -5.24% and +1.45%, respectively, from the prior year.

Any recent changes to analyst estimates for Southern Copper should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection has moved 3.48% higher. Southern Copper currently has a Zacks Rank of #2 (Buy).

Digging into valuation, Southern Copper currently has a Forward P/E ratio of 17.6. This represents a premium compared to its industry's average Forward P/E of 9.57.

Investors should also note that SCCO has a PEG ratio of 2.29 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 0.45 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 165, which puts it in the bottom 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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