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Southern Copper (SCCO) Outperforms Broader Market: What You Need to Know

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Southern Copper (SCCO - Free Report) closed the latest trading day at $114.43, indicating a +1.17% change from the previous session's end. The stock outpaced the S&P 500's daily gain of 0.71%. Elsewhere, the Dow saw an upswing of 1.03%, while the tech-heavy Nasdaq appreciated by 0.6%.

Shares of the miner witnessed a gain of 19.88% over the previous month, beating the performance of the Basic Materials sector with its gain of 5.75% and the S&P 500's gain of 6.41%.

The upcoming earnings release of Southern Copper will be of great interest to investors. It is anticipated that the company will report an EPS of $1.12, marking a 41.77% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $2.91 billion, showing a 16.31% escalation compared to the year-ago quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.50 per share and a revenue of $11.65 billion, representing changes of +44.69% and +17.68%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Southern Copper. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 4.02% upward. Currently, Southern Copper is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, Southern Copper is currently trading at a Forward P/E ratio of 25.11. Its industry sports an average Forward P/E of 21.32, so one might conclude that Southern Copper is trading at a premium comparatively.

We can additionally observe that SCCO currently boasts a PEG ratio of 1.21. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Mining - Non Ferrous industry had an average PEG ratio of 0.86.

The Mining - Non Ferrous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 88, which puts it in the top 35% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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