Back to top

Image: Bigstock

Is Southern Copper (SCCO) Outperforming Other Basic Materials Stocks This Year?

Read MoreHide Full Article

For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Southern Copper (SCCO - Free Report) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Basic Materials sector should help us answer this question.

Southern Copper is one of 241 individual stocks in the Basic Materials sector. Collectively, these companies sit at #7 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Southern Copper is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for SCCO's full-year earnings has moved 7.2% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the latest available data, SCCO has gained about 53.6% so far this year. Meanwhile, the Basic Materials sector has returned an average of 25.8% on a year-to-date basis. As we can see, Southern Copper is performing better than its sector in the calendar year.

Another stock in the Basic Materials sector, Hochschild Mining PLC (HCHDF - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 117.7%.

The consensus estimate for Hochschild Mining PLC's current year EPS has increased 44% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Southern Copper belongs to the Mining - Non Ferrous industry, a group that includes 10 individual stocks and currently sits at #56 in the Zacks Industry Rank. Stocks in this group have gained about 33.5% so far this year, so SCCO is performing better this group in terms of year-to-date returns.

In contrast, Hochschild Mining PLC falls under the Mining - Silver industry. Currently, this industry has 9 stocks and is ranked #15. Since the beginning of the year, the industry has moved +146.5%.

Investors with an interest in Basic Materials stocks should continue to track Southern Copper and Hochschild Mining PLC. These stocks will be looking to continue their solid performance.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Southern Copper Corporation (SCCO) - free report >>

Hochschild Mining PLC (HCHDF) - free report >>

Published in