Southern Copper (scco) Exceeds Market Returns: Some Facts To Consider

Southern Copper (SCCO) closed at $90.34 in the latest trading session, marking a +1.67% move from the prior day. This move outpaced the S&P 500's daily gain of 0.49%. Meanwhile, the Dow lost 0.2%, and the Nasdaq, a tech-heavy index, added 1.22%.

Prior to today's trading, shares of the miner had lost 3.51% over the past month. This has lagged the Basic Materials sector's loss of 2.81% and was narrower than the S&P 500's loss of 8.15% in that time.

Market participants will be closely following the financial results of Southern Copper in its upcoming release. The company is forecasted to report an EPS of $1.26, showcasing a 34.04% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $2.68 billion, showing a 3.22% escalation compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.66 per share and a revenue of $11.55 billion, signifying shifts of +7.62% and +1.03%, respectively, from the last year.

Investors should also note any recent changes to analyst estimates for Southern Copper. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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.

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. The Zacks Consensus EPS estimate has moved 0.78% higher within the past month. As of now, Southern Copper holds a Zacks Rank of #2 (Buy).

In terms of valuation, Southern Copper is presently being traded at a Forward P/E ratio of 19.06. Its industry sports an average Forward P/E of 16, so one might conclude that Southern Copper is trading at a premium comparatively.

We can additionally observe that SCCO currently boasts a PEG ratio of 1.73. 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. The Mining - Non Ferrous industry currently had an average PEG ratio of 0.8 as of yesterday's close.

The Mining - Non Ferrous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 182, which puts it in the bottom 28% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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

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