Southern Copper (SCCO) ended the recent trading session at $196.38, demonstrating a +1.98% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 1.02%. Meanwhile, the Dow experienced a rise of 0.63%, and the technology-dominated Nasdaq saw an increase of 1.23%.
The stock of miner has risen by 12.72% in the past month, leading the Basic Materials sector's gain of 0.75% and the S&P 500's gain of 0.63%.
The upcoming earnings release of Southern Copper will be of great interest to investors. The company's upcoming EPS is projected at $1.81, signifying a 52.10% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $3.87 billion, showing a 23.93% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.54 per share and revenue of $14.32 billion, which would represent changes of +24.81% and +6.72%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Southern Copper. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.46% decrease. Southern Copper currently has a Zacks Rank of #3 (Hold).
With respect to valuation, Southern Copper is currently being traded at a Forward P/E ratio of 29.44. This indicates a premium in contrast to its industry's Forward P/E of 28.09.
Investors should also note that SCCO has a PEG ratio of 2 right now. 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. Mining - Non Ferrous stocks are, on average, holding a PEG ratio of 1.48 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 95, putting it in the top 39% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Southern Copper Corporation (SCCO): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).