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

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Southern Copper (SCCO - Free Report) closed at $77.06 in the latest trading session, marking a +1.8% move from the prior day. This change outpaced the S&P 500's 0.4% gain on the day. Elsewhere, the Dow gained 0.33%, while the tech-heavy Nasdaq lost 1.1%.

Prior to today's trading, shares of the miner had gained 26.4% over the past month. This has outpaced the Basic Materials sector's gain of 5.7% and the S&P 500's loss of 0.01% in that time.

Investors will be hoping for strength from Southern Copper as it approaches its next earnings release. In that report, analysts expect Southern Copper to post earnings of $0.79 per share. This would mark a year-over-year decline of 26.85%. Meanwhile, our latest consensus estimate is calling for revenue of $2.48 billion, down 12.19% from the prior-year quarter.

It is also important to note the recent changes to analyst estimates for Southern Copper. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Southern Copper is holding a Zacks Rank of #1 (Strong Buy) right now.

Valuation is also important, so investors should note that Southern Copper has a Forward P/E ratio of 24.87 right now. For comparison, its industry has an average Forward P/E of 15.06, which means Southern Copper is trading at a premium to the group.

The Mining - Non Ferrous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 38, which puts it in the top 16% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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