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Why Southern Copper (SCCO) Outpaced the Stock Market Today

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Southern Copper (SCCO - Free Report) closed the most recent trading day at $96.93, moving +1.35% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.09%.

Coming into today, shares of the miner had gained 7% in the past month. In that same time, the Basic Materials sector gained 4.01%, while the S&P 500 gained 7.21%.

The investment community will be closely monitoring the performance of Southern Copper in its forthcoming earnings report. The company is predicted to post an EPS of $1.05, indicating a 13.93% decline compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $2.9 billion, showing a 6.86% drop compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $4.38 per share and a revenue of $11.88 billion, demonstrating changes of +1.15% and +3.86%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for Southern Copper. These revisions help to show the ever-changing nature of near-term business trends. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, Southern Copper possesses a Zacks Rank of #3 (Hold).

With respect to valuation, Southern Copper is currently being traded at a Forward P/E ratio of 21.83. This valuation marks a discount compared to its industry's average Forward P/E of 23.51.

We can additionally observe that SCCO currently boasts a PEG ratio of 2.3. 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. By the end of yesterday's trading, the Mining - Non Ferrous industry had an average PEG ratio of 0.91.

The Mining - Non Ferrous industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 64, finds itself in the top 27% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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