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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 $55.32, marking a -0.23% move from the previous day. This change lagged the S&P 500's 2.45% gain on the day. At the same time, the Dow added 2.15%, and the tech-heavy Nasdaq gained 0.18%.

Coming into today, shares of the miner had lost 8.29% in the past month. In that same time, the Basic Materials sector lost 9.64%, while the S&P 500 lost 5.71%.

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 $1.08 per share. This would mark a year-over-year decline of 10.74%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.82 billion, down 2.68% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.14 per share and revenue of $11.11 billion, which would represent changes of -5.69% and +1.63%, 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. 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. Within the past 30 days, our consensus EPS projection remained stagnant. Southern Copper is currently a Zacks Rank #3 (Hold).

Investors should also note Southern Copper's current valuation metrics, including its Forward P/E ratio of 13.4. This represents a premium compared to its industry's average Forward P/E of 7.21.

It is also worth noting that SCCO currently has a PEG ratio of 1.62. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Mining - Non Ferrous industry currently had an average PEG ratio of 0.96 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 49, which puts it in the top 20% 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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