Southern Copper (SCCO) Suffers a Larger Drop Than the General Market: Key Insights
Southern Copper (SCCO) closed the most recent trading day at $166.72, moving 5.82% from the previous trading session.
Southern Copper (SCCO) closed at $166.72 in the latest trading session, marking a -5.82% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 1.36%. Meanwhile, the Dow lost 1.64%, and the Nasdaq, a tech-heavy index, lost 1.46%. Shares of the miner witnessed a loss of 5.84% over the previous month, trailing the performance of the Basic Materials sector with its loss of 5.3%, and the S&P 500's loss of 1.76%. The investment community will be closely monitoring the performance of Southern Copper in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.88, marking a 57.98% rise compared to the same quarter of the previous year.
Simultaneously, our latest consensus estimate expects the revenue to be $3.87 billion, showing a 23.93% escalation compared to the year-ago quarter. For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.57 per share and a revenue of $14.56 billion, signifying shifts of +25.38% and +8.5%, respectively, from the last year. Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Southern Copper. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.3% higher. Southern Copper is currently a Zacks Rank #3 (Hold).
With respect to valuation, Southern Copper is currently being traded at a Forward P/E ratio of 26.94. This expresses a premium compared to the average Forward P/E of 25.21 of its industry. Meanwhile, SCCO's PEG ratio is currently 1.83. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Mining - Non Ferrous industry had an average PEG ratio of 1.34. The Mining - Non Ferrous industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 86, positioning it in the top 36% of all 250+ industries.
Story Continues The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Southern Copper Corporation (SCCO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com).
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