Southern Copper (SCCO) closed at $58.50 in the latest trading session, marking a -1.78% move from the prior day. This change was narrower than the S&P 500’s 1.9% loss on the day. Meanwhile, the Dow lost 1.86%, and the Nasdaq, a tech-heavy index, added 0.21%.
Coming into today, shares of the miner had lost 1.57% in the past month. In that same time, the Basic Materials sector gained 0.06%, while the S&P 500 gained 1.2%.
Southern Copper will be looking to display strength as it nears its next earnings release. On that day, Southern Copper is projected to report earnings of $1.10 per share, which would represent year-over-year growth of 44.74%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.59 billion, up 9.99% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.40 per share and revenue of $10.79 billion. These totals would mark changes of +116.75% and +35.12%, respectively, from last year.
Any recent changes to analyst estimates for Southern Copper should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 0.15% lower within the past month. Southern Copper is currently a Zacks Rank #3 (Hold).
Investors should also note Southern Copper’s current valuation metrics, including its Forward P/E ratio of 13.53. This valuation marks a premium compared to its industry’s average Forward P/E of 12.93.
Also, we should mention that SCCO has a PEG ratio of 0.84. 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. The Mining – Non Ferrous was holding an average PEG ratio of 0.64 at yesterday’s closing price.
The Mining – Non Ferrous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 111, putting it in the top 44% 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.
To follow SCCO in the coming trading sessions, be sure to utilize Zacks.com.
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