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Southern Copper (SCCO) closed the most recent trading day at $98.80, moving +0.94% from the previous trading session. The stock's change was more than the S&P 500's daily loss of 1.07%. Elsewhere, the Dow saw a downswing of 0.62%, while the tech-heavy Nasdaq depreciated by 1.71%.
The the stock of miner has risen by 0.63% in the past month, leading the Basic Materials sector's loss of 0.56% and the S&P 500's loss of 7.03%.
The investment community will be paying close attention to the earnings performance of Southern Copper in its upcoming release. The company is predicted to post an EPS of $1.05, indicating a 11.7% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $2.79 billion, up 7.48% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.74 per share and a revenue of $11.8 billion, signifying shifts of +9.47% and +3.22%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Southern Copper. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.76% higher. Southern Copper is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, Southern Copper is presently trading at a Forward P/E ratio of 20.63. For comparison, its industry has an average Forward P/E of 18.56, which means Southern Copper is trading at a premium to the group.
We can also see that SCCO currently has a PEG ratio of 1.87. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Mining - Non Ferrous stocks are, on average, holding a PEG ratio of 0.86 based on yesterday's closing prices.
The Mining - Non Ferrous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 183, which puts it in the bottom 28% of all 250+ industries.