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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 $94.65, moving +1.27% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.96%. At the same time, the Dow added 0.89%, and the tech-heavy Nasdaq gained 0.94%.

Prior to today's trading, shares of the miner had gained 1.21% outpaced the Basic Materials sector's gain of 0.57% and the S&P 500's gain of 0.5%.

The investment community will be closely monitoring the performance of Southern Copper in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $1.05, reflecting a 13.93% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $2.9 billion, down 6.86% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.38 per share and a revenue of $11.87 billion, representing changes of +1.15% and +3.86%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Southern Copper. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Currently, Southern Copper is carrying a Zacks Rank of #3 (Hold).

From a valuation perspective, Southern Copper is currently exchanging hands at a Forward P/E ratio of 21.33. This represents a discount compared to its industry average Forward P/E of 22.78.

Meanwhile, SCCO's PEG ratio is currently 2.25. 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 0.85 as of yesterday's close.

The Mining - Non Ferrous industry is part of the Basic Materials sector. With its current Zacks Industry Rank of 86, this industry ranks in the top 35% of all industries, numbering over 250.

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.

To follow SCCO in the coming trading sessions, be sure to utilize Zacks.com.


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