Southern Copper (SCCO) Outpaces Stock Market Gains: What You Should Know

In the latest trading session, Southern Copper (SCCO) closed at $71.86, marking a +0.27% move from the previous day. This move outpaced the S&P 500's daily gain of 0.15%.

Heading into today, shares of the miner had gained 2.91% over the past month, lagging the Basic Materials sector's gain of 8.81% and outpacing the S&P 500's gain of 0.58% in that time.

Investors will be hoping for strength from SCCO as it approaches 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%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.55 billion, up 42.62% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.41 per share and revenue of $10.27 billion. These totals would mark changes of +117.24% and +28.65%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for SCCO. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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 past month, the Zacks Consensus EPS estimate has moved 10.43% higher. SCCO is currently a Zacks Rank #1 (Strong Buy).

In terms of valuation, SCCO is currently trading at a Forward P/E ratio of 16.25. For comparison, its industry has an average Forward P/E of 15.56, which means SCCO is trading at a premium to the group.

Meanwhile, SCCO's PEG ratio is currently 0.87. 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. The Mining – Non Ferrous industry currently had an average PEG ratio of 0.69 as of yesterday's close.

The Mining – Non Ferrous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 119, putting it in the top 47% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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By Matt Earle

Matthew Earle is the Founder of MiningFeeds. In 2005, Matt founded MiningNerds.com to provide data and information to the mining investment community. This site was merged with Highgrade Review to form MiningFeeds. Matt has a B.Sc. degree with a minor in geology from the University of Toronto.

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