Southern Copper (SCCO) ended the recent trading session at $193.22, demonstrating a +1.81% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 1.65%. On the other hand, the Dow registered a gain of 0.92%, and the technology-centric Nasdaq increased by 3.07%.

Coming into today, shares of the miner had gained 7.36% in the past month. In that same time, the Basic Materials sector lost 4.3%, while the S&P 500 gained 0.48%.

Analysts and investors alike will be keeping a close eye on the performance of Southern Copper in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.85, showcasing a 51.64% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $4.23 billion, indicating a 38.73% growth compared to the corresponding quarter of the prior year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.25 per share and revenue of $16.54 billion, indicating changes of +38.36% and +23.22%, respectively, compared to the previous year.

Investors should also take note of any recent adjustments to analyst estimates for Southern Copper. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 4.05% rise in the Zacks Consensus EPS estimate. As of now, Southern Copper holds a Zacks Rank of #3 (Hold).

In terms of valuation, Southern Copper is presently being traded at a Forward P/E ratio of 26.17. This expresses a discount compared to the average Forward P/E of 26.42 of its industry.

It's also important to note that SCCO currently trades at a PEG ratio of 1.79. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Mining – Non Ferrous stocks are, on average, holding a PEG ratio of 1.55 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 186, which puts it in the bottom 24% 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.

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

This article originally published on Zacks Investment Research (zacks.com).

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