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Southern Copper (SCCO) Suffers a Larger Drop Than the General Market: Key Insights

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In the latest trading session, Southern Copper (SCCO - Free Report) closed at $190.32, marking a -8.47% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.43%. Elsewhere, the Dow lost 0.37%, while the tech-heavy Nasdaq lost 0.94%.

Coming into today, shares of the miner had gained 44.93% in the past month. In that same time, the Basic Materials sector gained 14.45%, while the S&P 500 gained 0.89%.

Investors will be eagerly watching for the performance of Southern Copper in its upcoming earnings disclosure. On that day, Southern Copper is projected to report earnings of $1.46 per share, which would represent year-over-year growth of 44.55%. Meanwhile, our latest consensus estimate is calling for revenue of $3.62 billion, up 30.04% from the prior-year quarter.

SCCO's full-year Zacks Consensus Estimates are calling for earnings of $5.24 per share and revenue of $13.17 billion. These results would represent year-over-year changes of +21.02% and 0%, respectively.

Investors might also notice recent changes to analyst estimates for Southern Copper. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

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, there's been a 0.04% rise in the Zacks Consensus EPS estimate. As of now, Southern Copper holds a Zacks Rank of #3 (Hold).

Looking at its valuation, Southern Copper is holding a Forward P/E ratio of 33.6. This represents a premium compared to its industry average Forward P/E of 30.98.

We can additionally observe that SCCO currently boasts a PEG ratio of 1.76. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Mining - Non Ferrous industry stood at 0.77 at the close of the market yesterday.

The Mining - Non Ferrous industry is part of the Basic Materials sector. At present, this industry carries a Zacks Industry Rank of 47, placing it within the top 20% of over 250 industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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