Why Southern Copper (SCCO) Outpaced the Stock Market Today
Southern Copper (SCCO) closed at $113.14 in the latest trading session, marking a +1.46% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.47%. Meanwhile, the Dow experienced a rise of 0.79%, and the technology-dominated Nasdaq saw an increase of 0.28%.
Shares of the miner witnessed a gain of 12.43% over the previous month, beating the performance of the Basic Materials sector with its gain of 6.97% and the S&P 500's gain of 3.48%.
The investment community will be closely monitoring the performance of Southern Copper in its forthcoming earnings report. The company's upcoming EPS is projected at $1.12, signifying a 41.77% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $2.91 billion, up 16.31% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.45 per share and a revenue of $11.65 billion, signifying shifts of +43.09% and +17.68%, respectively, from the last year.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 5.14% rise in the Zacks Consensus EPS estimate. At present, Southern Copper boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Southern Copper has a Forward P/E ratio of 25.07 right now. This expresses a premium compared to the average Forward P/E of 20.03 of its industry.
Meanwhile, SCCO's PEG ratio is currently 1.2. 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 0.83.
The Mining - Non Ferrous industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 64, positioning it in the top 26% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Southern Copper Corporation (SCCO) : Free Stock Analysis Report