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Why Southern Copper (SCCO) Outpaced the Stock Market Today

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In the latest close session, Southern Copper (SCCO - Free Report) was up +1.05% at $122.64. This change outpaced the S&P 500's 0.34% gain on the day. At the same time, the Dow added 0.09%, and the tech-heavy Nasdaq gained 0.42%.

The miner's shares have seen an increase of 24.79% over the last month, surpassing the Basic Materials sector's gain of 4.75% and the S&P 500's gain of 3.54%.

The investment community will be paying close attention to the earnings performance of Southern Copper in its upcoming release. The company's earnings per share (EPS) are projected to be $1.11, reflecting a 3.48% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.09 billion, up 5.28% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $4.78 per share and revenue of $12.29 billion, which would represent changes of +10.39% and +7.52%, respectively, from the prior year.

Any recent changes to analyst estimates for Southern Copper should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.57% higher. Southern Copper is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Southern Copper has a Forward P/E ratio of 25.41 right now. This represents no noticeable deviation compared to its industry average Forward P/E of 25.41.

We can additionally observe that SCCO currently boasts a PEG ratio of 1.24. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Mining - Non Ferrous was holding an average PEG ratio of 0.72 at yesterday's closing price.

The Mining - Non Ferrous industry is part of the Basic Materials sector. At present, this industry carries a Zacks Industry Rank of 50, placing it within the top 21% of over 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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