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The latest trading session saw Southern Copper (SCCO) ending at $93.01, denoting a +1.12% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a gain of 1.09% for the day. At the same time, the Dow added 1.18%, and the tech-heavy Nasdaq gained 1.03%.
The miner's shares have seen a decrease of 8.64% over the last month, surpassing the Basic Materials sector's loss of 8.81% and falling behind the S&P 500's loss of 0.71%.
The upcoming earnings release of Southern Copper will be of great interest to investors. The company's earnings per share (EPS) are projected to be $1.06, reflecting an 85.96% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.85 billion, up 24.24% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.45 per share and revenue of $11.79 billion. These totals would mark changes of +43.09% and +19.11%, respectively, from last year.
Any recent changes to analyst estimates for Southern Copper should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.71% decrease. Right now, Southern Copper possesses a Zacks Rank of #3 (Hold).
From a valuation perspective, Southern Copper is currently exchanging hands at a Forward P/E ratio of 20.68. Its industry sports an average Forward P/E of 19.3, so one might conclude that Southern Copper is trading at a premium comparatively.
It is also worth noting that SCCO currently has a PEG ratio of 1.44. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Mining - Non Ferrous industry held an average PEG ratio of 0.92.
The Mining - Non Ferrous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 135, putting it in the bottom 47% of all 250+ industries.