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Here's Why Southern Copper (SCCO) Fell More Than Broader Market

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In the latest trading session, Southern Copper (SCCO - Free Report) closed at $158.09, marking a -1.24% move from the previous day. This move lagged the S&P 500's daily loss of 0.34%. Meanwhile, the Dow experienced a drop of 0.94%, and the technology-dominated Nasdaq saw an increase of 0.16%.

Prior to today's trading, shares of the miner had gained 14.02% outpaced the Basic Materials sector's gain of 6.26% and the S&P 500's gain of 1.19%.

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 $1.46, reflecting a 44.55% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $3.62 billion, up 30.11% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.27 per share and a revenue of $13.17 billion, indicating changes of +21.71% and 0%, respectively, from the former year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Southern Copper. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate has moved 5.59% higher. Southern Copper presently features a Zacks Rank of #3 (Hold).

In terms of valuation, Southern Copper is currently trading at a Forward P/E ratio of 25.88. This signifies a discount in comparison to the average Forward P/E of 27.04 for its industry.

We can additionally observe that SCCO currently boasts a PEG ratio of 1.26. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Mining - Non Ferrous industry had an average PEG ratio of 0.95.

The Mining - Non Ferrous industry is part of the Basic Materials sector. With its current Zacks Industry Rank of 17, this industry ranks in the top 7% of all industries, numbering over 250.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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