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Strength Seen in Southern Copper (SCCO): Can Its 6.0% Jump Turn into More Strength?
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Southern Copper (SCCO - Free Report) shares ended the last trading session 6% higher at $103. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 17.1% gain over the past four weeks.
Southern Copper's shares have surged alongside the uptick in copper prices. On Mar 15, 2024, copper futures for May delivery rose 1.95% to settle at $4.12 per pound, levels not seen since April 2023. This rally follows the announcement that China’s leading copper smelters have collectively agreed to scale back production at unprofitable facilities due to shortages of raw materials. This decision was prompted by the drastic fall in copper concentrate prices to their lowest point in a decade, impacting the profitability of smelting operations. No specific production limits have been stipulated. Each smelter will assess its operations and make necessary adjustments.
This miner is expected to post quarterly earnings of $0.86 per share in its upcoming report, which represents a year-over-year change of -18.1%. Revenues are expected to be $2.5 billion, down 10.6% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Southern Copper, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on SCCO going forward to see if this recent jump can turn into more strength down the road.
Southern Copper belongs to the Zacks Mining - Non Ferrous industry. Another stock from the same industry, Freeport-McMoRan (FCX - Free Report) , closed the last trading session 3% higher at $44.61. Over the past month, FCX has returned 13.3%.
For Freeport-McMoRan, the consensus EPS estimate for the upcoming report has changed -2.9% over the past month to $0.36. This represents a change of -30.8% from what the company reported a year ago. Freeport-McMoRan currently has a Zacks Rank of #3 (Hold).
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Strength Seen in Southern Copper (SCCO): Can Its 6.0% Jump Turn into More Strength?
Southern Copper (SCCO - Free Report) shares ended the last trading session 6% higher at $103. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 17.1% gain over the past four weeks.
Southern Copper's shares have surged alongside the uptick in copper prices. On Mar 15, 2024, copper futures for May delivery rose 1.95% to settle at $4.12 per pound, levels not seen since April 2023. This rally follows the announcement that China’s leading copper smelters have collectively agreed to scale back production at unprofitable facilities due to shortages of raw materials. This decision was prompted by the drastic fall in copper concentrate prices to their lowest point in a decade, impacting the profitability of smelting operations. No specific production limits have been stipulated. Each smelter will assess its operations and make necessary adjustments.
This miner is expected to post quarterly earnings of $0.86 per share in its upcoming report, which represents a year-over-year change of -18.1%. Revenues are expected to be $2.5 billion, down 10.6% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Southern Copper, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on SCCO going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Southern Copper belongs to the Zacks Mining - Non Ferrous industry. Another stock from the same industry, Freeport-McMoRan (FCX - Free Report) , closed the last trading session 3% higher at $44.61. Over the past month, FCX has returned 13.3%.
For Freeport-McMoRan, the consensus EPS estimate for the upcoming report has changed -2.9% over the past month to $0.36. This represents a change of -30.8% from what the company reported a year ago. Freeport-McMoRan currently has a Zacks Rank of #3 (Hold).