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In the latest market close, Southern Copper (SCCO) reached $90.82, with a +0.36% movement compared to the previous day. The stock exceeded the S&P 500, which registered a loss of 1.78% for the day. Meanwhile, the Dow lost 0.99%, and the Nasdaq, a tech-heavy index, lost 2.61%.
Coming into today, shares of the miner had lost 3.15% in the past month. In that same time, the Basic Materials sector lost 0.13%, while the S&P 500 lost 3.48%.
The investment community will be closely monitoring the performance of Southern Copper in its forthcoming earnings report. On that day, Southern Copper is projected to report earnings of $1.26 per share, which would represent year-over-year growth of 34.04%. At the same time, our most recent consensus estimate is projecting a revenue of $2.68 billion, reflecting a 3.22% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $4.66 per share and a revenue of $11.55 billion, demonstrating changes of +7.62% and +1.03%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Southern Copper. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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 shifted 0.78% upward. Southern Copper presently features a Zacks Rank of #3 (Hold).
Looking at valuation, Southern Copper is presently trading at a Forward P/E ratio of 19.41. For comparison, its industry has an average Forward P/E of 16, which means Southern Copper is trading at a premium to the group.
It's also important to note that SCCO currently trades at a PEG ratio of 1.76. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Mining - Non Ferrous was holding an average PEG ratio of 0.81 at yesterday's closing price.
The Mining - Non Ferrous industry is part of the Basic Materials sector. With its current Zacks Industry Rank of 192, this industry ranks in the bottom 24% of all industries, numbering over 250.