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Southern Copper (SCCO) Gains But Lags Market: What You Should Know

Southern Copper (SCCO) closed the most recent trading day at $49.55, moving +0.71% from the previous trading session. This move lagged the S&P 500's daily gain of 1.06%. At the same time, the Dow added 0.71%, and the tech-heavy Nasdaq gained 0.18%.

Prior to today's trading, shares of the miner had gained 0.04% over the past month. This has lagged the Basic Materials sector's gain of 2.82% and outpaced the S&P 500's loss of 1.14% in that time.

Investors will be hoping for strength from Southern Copper as it approaches its next earnings release. In that report, analysts expect Southern Copper to post earnings of $0.59 per share. This would mark a year-over-year decline of 47.32%. Our most recent consensus estimate is calling for quarterly revenue of $2.37 billion, down 11.76% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.80 per share and revenue of $9.89 billion. These totals would mark changes of -36.22% and -9.56%, respectively, from last year.

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It is also important to note the recent changes to analyst estimates for Southern Copper. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 16.49% lower within the past month. Southern Copper is holding a Zacks Rank of #5 (Strong Sell) right now.

Digging into valuation, Southern Copper currently has a Forward P/E ratio of 17.55. This represents a premium compared to its industry's average Forward P/E of 12.08.

We can also see that SCCO currently has a PEG ratio of 2.12. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Mining - Non Ferrous stocks are, on average, holding a PEG ratio of 1.2 based on yesterday's closing prices.

The Mining - Non Ferrous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 234, putting it in the bottom 8% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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