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

Southern Copper (SCCO) closed the most recent trading day at $57.17, moving -1.77% from the previous trading session. This change lagged the S&P 500's 0.16% gain on the day.

Coming into today, shares of the miner had lost 7.01% in the past month. In that same time, the Basic Materials sector lost 7.91%, while the S&P 500 lost 3.32%.

Wall Street will be looking for positivity from SCCO as it approaches its next earnings report date. The company is expected to report EPS of $1.10, up 69.23% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.7 billion, up 27.01% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.42 per share and revenue of $10.97 billion, which would represent changes of +117.73% and +37.36%, respectively, from the prior year.

Any recent changes to analyst estimates for SCCO should also be noted by investors. 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 company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 past month, the Zacks Consensus EPS estimate has moved 4.95% lower. SCCO is holding a Zacks Rank of #5 (Strong Sell) right now.

Investors should also note SCCO's current valuation metrics, including its Forward P/E ratio of 13.17. This valuation marks a premium compared to its industry's average Forward P/E of 12.84.

Investors should also note that SCCO has a PEG ratio of 0.79 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Mining – Non Ferrous was holding an average PEG ratio of 0.79 at yesterday's closing price.

The Mining – Non Ferrous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 192, putting it in the bottom 25% 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.

To follow SCCO in the coming trading sessions, be sure to utilize Zacks.com.

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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.

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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