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

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In the latest trading session, Southern Copper (SCCO - Free Report) closed at $71.36, marking a +0.56% move from the previous day. This change outpaced the S&P 500's 0.3% gain on the day. Meanwhile, the Dow gained 0.24%, and the Nasdaq, a tech-heavy index, added 0.34%.

Coming into today, shares of the miner had lost 3.73% in the past month. In that same time, the Basic Materials sector lost 3.26%, while the S&P 500 lost 1.21%.

Southern Copper will be looking to display strength as it nears its next earnings release. On that day, Southern Copper is projected to report earnings of $0.92 per share, which would represent a year-over-year decline of 9.8%. Our most recent consensus estimate is calling for quarterly revenue of $2.61 billion, down 5.53% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.38 per share and revenue of $9.83 billion, which would represent changes of -0.88% and -2.14%, respectively, from the prior year.

Any recent changes to analyst estimates for Southern Copper should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 0.39% lower within the past month. Southern Copper is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Southern Copper's current valuation metrics, including its Forward P/E ratio of 20.97. Its industry sports an average Forward P/E of 15.99, so we one might conclude that Southern Copper is trading at a premium comparatively.

Also, we should mention that SCCO has a PEG ratio of 3.84. 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. SCCO's industry had an average PEG ratio of 3.84 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 98, which puts it in the top 39% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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