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In the latest trading session, Southern Copper (SCCO) closed at $94.60, marking a +0.18% move from the previous day. The stock exceeded the S&P 500, which registered a loss of 0.04% for the day. Elsewhere, the Dow saw an upswing of 0.07%, while the tech-heavy Nasdaq depreciated by 0.05%.
The miner's stock has dropped by 5.3% in the past month, exceeding the Basic Materials sector's loss of 8.95% and lagging the S&P 500's gain of 1.05%.
The investment community will be paying close attention to the earnings performance of Southern Copper in its upcoming release. The company's upcoming EPS is projected at $1.06, signifying an 85.96% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $2.85 billion, showing a 24.24% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.45 per share and revenue of $11.79 billion, which would represent changes of +43.09% and +19.11%, respectively, from the prior 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 1.33% fall in the Zacks Consensus EPS estimate. Southern Copper is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Southern Copper's current valuation metrics, including its Forward P/E ratio of 21.23. This denotes a premium relative to the industry's average Forward P/E of 20.62.
We can also see that SCCO currently has a PEG ratio of 1.48. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SCCO's industry had an average PEG ratio of 0.94 as of yesterday's close.
The Mining - Non Ferrous industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 170, finds itself in the bottom 33% echelons of all 250+ industries.