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

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In the latest close session, Southern Copper (SCCO - Free Report) was up +1.32% at $111.44. This change outpaced the S&P 500's 0.44% gain on the day. Elsewhere, the Dow gained 0.14%, while the tech-heavy Nasdaq added 0.7%.

Prior to today's trading, shares of the miner had gained 12.76% outpaced the Basic Materials sector's gain of 7.28% and the S&P 500's gain of 4.03%.

Market participants will be closely following the financial results of Southern Copper in its upcoming release. The company is forecasted to report an EPS of $1.11, showcasing a 3.48% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $3.09 billion, reflecting a 5.28% rise from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.72 per share and a revenue of $12.29 billion, representing changes of +9.01% and +7.52%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Southern Copper. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. The Zacks Consensus EPS estimate has moved 0.43% higher within the past month. As of now, Southern Copper holds a Zacks Rank of #3 (Hold).

In terms of valuation, Southern Copper is currently trading at a Forward P/E ratio of 23.29. This signifies a discount in comparison to the average Forward P/E of 24.22 for its industry.

Investors should also note that SCCO has a PEG ratio of 1.62 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Mining - Non Ferrous stocks are, on average, holding a PEG ratio of 0.81 based on yesterday's closing prices.

The Mining - Non Ferrous industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 159, finds itself in the bottom 36% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. 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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