Southern Copper (SCCO) closed the most recent trading day at $65.07, moving -0.17% from the previous trading session. This move lagged the S&P 500’s daily gain of 0.35%.
Heading into today, shares of the miner had lost 2.64% over the past month, lagging the Basic Materials sector’s loss of 1% and the S&P 500’s gain of 3.64% in that time.
SCCO will be looking to display strength as it nears its next earnings release. On that day, SCCO is projected to report earnings of $1.09 per share, which would represent year-over-year growth of 220.59%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.55 billion, up 42.62% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.34 per share and revenue of $10.44 billion, which would represent changes of +113.79% and +30.78%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for SCCO. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.66% lower. SCCO is currently a Zacks Rank #3 (Hold).
Looking at its valuation, SCCO is holding a Forward P/E ratio of 15.03. For comparison, its industry has an average Forward P/E of 15.72, which means SCCO is trading at a discount to the group.
We can also see that SCCO currently has a PEG ratio of 0.8. 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 currently had an average PEG ratio of 0.61 as of yesterday’s close.
The Mining – Non Ferrous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 77, which puts it in the top 31% of all 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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