Southern Copper (SCCO) closed at $64.42 in the latest trading session, marking a +1.19% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.33%.
Heading into today, shares of the miner had lost 7.99% over the past month, lagging the Basic Materials sector's loss of 3.78% and the S&P 500's gain of 1.74% in that time.
SCCO will be looking to display strength as it nears its next earnings release. In that report, analysts expect SCCO to post earnings of $1.09 per share. This would mark year-over-year growth of 220.59%. Our most recent consensus estimate is calling for quarterly revenue of $2.55 billion, up 42.62% from the year-ago period.
SCCO's full-year Zacks Consensus Estimates are calling for earnings of $4.49 per share and revenue of $10.44 billion. These results would represent year-over-year changes of +121.18% and +30.78%, respectively.
Investors should also note any recent changes to analyst estimates for SCCO. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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. Within the past 30 days, our consensus EPS projection has moved 1.89% higher. SCCO is currently a Zacks Rank #1 (Strong Buy).
Looking at its valuation, SCCO is holding a Forward P/E ratio of 14.17. This valuation marks a discount compared to its industry's average Forward P/E of 15.78.
Also, we should mention that SCCO has a PEG ratio of 0.76. 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 0.59 based on yesterday's closing prices.
The Mining - Non Ferrous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 41, which puts it in the top 17% 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.
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