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Southern Copper (SCCO) closed the most recent trading day at $91.62, moving -1.11% from the previous trading session. This move lagged the S&P 500's daily loss of 0.51%. Elsewhere, the Dow saw a downswing of 0.75%, while the tech-heavy Nasdaq depreciated by 0.28%.
Heading into today, shares of the miner had gained 0.53% over the past month, lagging the Basic Materials sector's gain of 4.34% and the S&P 500's gain of 2.87% in that time.
The investment community will be closely monitoring the performance of Southern Copper in its forthcoming earnings report. The company is forecasted to report an EPS of $1.02, showcasing a 78.95% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.78 billion, indicating a 21.1% increase compared to the same quarter of the previous year.
Investors might also notice recent changes to analyst estimates for Southern Copper. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.46% higher. Southern Copper currently has a Zacks Rank of #3 (Hold).
In the context of valuation, Southern Copper is at present trading with a Forward P/E ratio of 20.03. Its industry sports an average Forward P/E of 20.03, so one might conclude that Southern Copper is trading at no noticeable deviation comparatively.
Investors should also note that SCCO has a PEG ratio of 1.81 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Mining - Non Ferrous was holding an average PEG ratio of 0.87 at yesterday's closing price.
The Mining - Non Ferrous industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 165, positioning it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.