Southern Copper (SCCO) Falls More Steeply Than Broader Market: What Investors Need to Know
Southern Copper (SCCO) ended the recent trading session at $118.87, demonstrating a -1.3% swing from the preceding day's closing price. This change lagged the S&P 500's 0.13% loss on the day. Elsewhere, the Dow saw an upswing of 0.33%, while the tech-heavy Nasdaq depreciated by 0.39%.
The the stock of miner has risen by 18.73% in the past month, leading the Basic Materials sector's gain of 5.81% and the S&P 500's gain of 2.43%.
The upcoming earnings release of Southern Copper will be of great interest to investors. It is anticipated that the company will report an EPS of $1.04, marking a 31.65% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $2.77 billion, reflecting a 10.58% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.29 per share and a revenue of $11.55 billion, signifying shifts of +37.94% and +16.71%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Southern Copper. These revisions help to show the ever-changing nature 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, Southern Copper possesses a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Southern Copper has a Forward P/E ratio of 28.06 right now. Its industry sports an average Forward P/E of 17.91, so one might conclude that Southern Copper is trading at a premium comparatively.
Also, we should mention that SCCO has a PEG ratio of 1.24. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Mining - Non Ferrous industry was having an average PEG ratio of 0.88.
The Mining - Non Ferrous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 100, putting it in the top 40% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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Southern Copper Corporation (SCCO) : Free Stock Analysis Report