Back to top

Image: Bigstock

Southern Copper (SCCO) Outperforms Broader Market: What You Need to Know

Read MoreHide Full Article

The latest trading session saw Southern Copper (SCCO - Free Report) ending at $98.69, denoting a +0.7% adjustment from its last day's close. The stock's performance was ahead of the S&P 500's daily gain of 0.54%. Elsewhere, the Dow gained 0.72%, while the tech-heavy Nasdaq added 0.65%.

Shares of the miner witnessed a loss of 7.36% over the previous month, trailing the performance of the Basic Materials sector with its gain of 2.05% and the S&P 500's gain of 4.86%.

Market participants will be closely following the financial results of Southern Copper in its upcoming release. The company's upcoming EPS is projected at $1.06, signifying a 34.18% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $2.81 billion, indicating a 12.13% upward movement from the same quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.29 per share and revenue of $11.59 billion, indicating changes of +37.94% and +17.09%, respectively, compared to the previous year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Southern Copper. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Southern Copper is currently sporting a Zacks Rank of #4 (Sell).

Digging into valuation, Southern Copper currently has a Forward P/E ratio of 22.83. Its industry sports an average Forward P/E of 12.88, so one might conclude that Southern Copper is trading at a premium comparatively.

We can additionally observe that SCCO currently boasts a PEG ratio of 1.01. 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. The Mining - Non Ferrous industry had an average PEG ratio of 0.67 as trading concluded yesterday.

The Mining - Non Ferrous industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 147, finds itself in the bottom 42% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


See More Zacks Research for These Tickers


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


Southern Copper Corporation (SCCO) - free report >>

Published in