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The most recent trading session ended with Southern Copper (SCCO) standing at $98.68, reflecting a +0.57% shift from the previouse trading day's closing. The stock's performance was behind the S&P 500's daily gain of 0.88%. On the other hand, the Dow registered a gain of 1.24%, and the technology-centric Nasdaq increased by 0.65%.
Prior to today's trading, shares of the miner had gained 4.86% over the past month. This has outpaced the Basic Materials sector's gain of 1.03% and the S&P 500's gain of 1.17% in that time.
The investment community will be paying close attention to the earnings performance of Southern Copper in its upcoming release. In that report, analysts expect Southern Copper to post earnings of $1.06 per share. This would mark year-over-year growth of 85.96%. Simultaneously, our latest consensus estimate expects the revenue to be $2.84 billion, showing a 23.57% escalation compared to the year-ago quarter.
It's also important for investors to be aware of any recent modifications to analyst estimates for Southern Copper. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.19% lower. Southern Copper is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Southern Copper has a Forward P/E ratio of 21.57 right now. This expresses no noticeable deviation compared to the average Forward P/E of 21.57 of its industry.
We can also see that SCCO currently has a PEG ratio of 1.95. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Mining - Non Ferrous industry held an average PEG ratio of 1.95.
The Mining - Non Ferrous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 151, putting it in the bottom 40% of all 250+ industries.