In the latest trading session, Southern Copper (SCCO) closed at $72.07, marking a +0.95% move from the previous day. This change outpaced the S&P 500’s 0.93% gain on the day.
Heading into today, shares of the miner had gained 3.37% over the past month, lagging the Basic Materials sector’s gain of 6.26% and the S&P 500’s gain of 5.84% in that time.
Investors will be hoping for strength from SCCO as it approaches its next earnings release. The company is expected to report EPS of $0.85, up 203.57% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.37 per share and revenue of $8.93 billion. These totals would mark changes of +66.01% and +11.86%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for SCCO. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. The Zacks Consensus EPS estimate has moved 12.44% higher within the past month. SCCO is holding a Zacks Rank of #1 (Strong Buy) right now.
Valuation is also important, so investors should note that SCCO has a Forward P/E ratio of 22.09 right now. For comparison, its industry has an average Forward P/E of 15.88, which means SCCO is trading at a premium to the group.
We can also see that SCCO currently has a PEG ratio of 1.24. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. Mining – Non Ferrous stocks are, on average, holding a PEG ratio of 0.88 based on yesterday’s closing prices.
The Mining – Non Ferrous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 74, putting it in the top 30% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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