Southern Copper (SCCO) Dips More Than Broader Markets: What You Should Know

This story originally appeared on Zacks

In the last trading session, Southern Copper (SCCO) closed at $67.97, recording a -1.79% move from the day before. This change delayed the S&P 500’s loss of 1.42% on the day. Meanwhile, the Dow Jones lost 0.49%, and the tech-heavy Nasdaq lost 0.47%.

– Zacks

Ahead of today’s trading, the miner’s stock prices are up 21.21% over the past month. This outpaced the basic materials sector’s gain of 7.56% and the S&P 500’s gain of 0.39% in that time.

Investors are hoping for some strength from Southern Copper as it approaches its next earnings release. The company is expected to report earnings per share of $1.18, up 55.26% from the previous quarter. Meanwhile, the Zacks Consensus revenue report expects net sales of $2.61 billion, up 10.84% ​​from the same period last year.

Investors may also note the recent changes in analyst estimates for Southern Copper. These recent reviews tend to reflect the evolving nature of short-term business trends. As such, positive rating reviews reflect the analyst’s optimism about the company’s business and profitability.

Based on our research, we believe that these discretionary reviews are directly related to stock movements close to the team. We developed Zacks Rank to take advantage of this phenomenon. Our system takes these discretionary changes into account and provides a clear and actionable rating model.

Ranging from #1 (strong buy) to #5 (strong sell), the Zacks Rank system has an impressive externally audited track record of outperformance, with the #1 stock generating +25% average annual return since 1988. The shadow Zacks Consensus EPS is flat over the past month. Southern Copper currently ranks Zacks 3rd (Hold).

In terms of valuation, Southern Copper is currently trading at a forward P/E ratio of 16.81. This valuation represents a premium over the industry’s forward P/E average of 11.22.

Investors should also note that SCCO has a PEG ratio of 1.04 at the moment. This common metric is similar to the widely known price-earnings (P/E) ratio, with the difference that the PEG ratio also takes into account the company’s expected earnings growth rate. The average P/E ratio for the SCCO industry was 0.38 as of yesterday’s close.

Mining – the non-ferrous industry is part of the basic materials sector. The industry currently has a Zacks Industry Rating of 180, placing it in the bottom 30% of all 250+ industries.

Zacks Industry Ranking measures the strength of our industry groups by measuring the average Zacks rating of the individual stocks within the groups. Our research shows that industries ranked 50% outperform the bottom half by a factor of 2 to 1.

To follow the SCCO in upcoming trading sessions, be sure to use Zacks.com.

Bitcoin, like the Internet itself, can change everything

Blockchain and cryptocurrency have sparked one of the most exciting topics of discussion in a generation. Some call it the “Internet of Money” and predict that it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon to Sears. Experts agree that we are still in the early stages of this technology, and as it grows, it will create many investment opportunities.

Zacks has just revealed 3 companies that can help investors tap into the huge profit potential of Bitcoin and other cryptocurrencies with much less volatility than buying them outright.

Watch 3 cryptocurrency related stocks now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 of the best stocks for the next 30 days. Click for this free report

Southern Copper Corporation (SCCO): Free Inventory Analysis Report

To read this article on Zacks.com click here.

.

Leave a Comment