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Southern Copper (SCCO) Declines More Than Market: Some Information for Investors

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In the latest trading session, Southern Copper (SCCO - Free Report) closed at $115.32, marking a -1.71% move from the previous day. This change lagged the S&P 500's 0.17% loss on the day. Meanwhile, the Dow experienced a drop of 0.44%, and the technology-dominated Nasdaq saw a decrease of 0.04%.

Shares of the miner have appreciated by 21.77% over the course of the past month, outperforming the Basic Materials sector's gain of 4.92% and the S&P 500's gain of 1.25%.

The investment community will be closely monitoring the performance of Southern Copper in its forthcoming earnings report. The company is expected to report EPS of $1.04, up 31.65% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $2.77 billion, indicating a 10.58% upward movement from the same quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.32 per share and revenue of $11.55 billion, indicating changes of +38.91% and +16.71%, respectively, compared to the previous year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Southern Copper. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.23% lower. Southern Copper is holding a Zacks Rank of #4 (Sell) right now.

Investors should also note Southern Copper's current valuation metrics, including its Forward P/E ratio of 27.16. This represents a premium compared to its industry's average Forward P/E of 21.01.

Investors should also note that SCCO has a PEG ratio of 1.2 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Mining - Non Ferrous industry currently had an average PEG ratio of 0.86 as of yesterday's close.

The Mining - Non Ferrous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 99, putting it in the top 40% 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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