In the latest trading session, Southern Copper (SCCO) closed at $48.76, marking a +1.88% move from the previous day. The stock outpaced the S&P 500’s daily gain of 0.36%. Elsewhere, the Dow gained 0.23%, while the tech-heavy Nasdaq lost 0.1%.
Coming into today, shares of the miner had lost 26.24% in the past month. In that same time, the Basic Materials sector lost 25.75%, while the S&P 500 lost 6.59%.
Investors will be hoping for strength from Southern Copper as it approaches its next earnings release. In that report, analysts expect Southern Copper to post earnings of $1.08 per share. This would mark a year-over-year decline of 10.74%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.82 billion, down 2.68% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.14 per share and revenue of $11.11 billion. These totals would mark changes of -5.69% and +1.63%, respectively, from last year.
Any recent changes to analyst estimates for Southern Copper should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 remained stagnant. Southern Copper is holding a Zacks Rank of #4 (Sell) right now.
In terms of valuation, Southern Copper is currently trading at a Forward P/E ratio of 11.57. This valuation marks a premium compared to its industry’s average Forward P/E of 5.33.
Meanwhile, SCCO’s PEG ratio is currently 1.4. 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. SCCO’s industry had an average PEG ratio of 0.82 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 190, which puts it in the bottom 25% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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