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

In the latest trading session, Southern Copper (SCCO) closed at $57.65, marking a +0.77% move from the previous day. This change lagged the S&P 500's 1.46% gain on the day. Meanwhile, the Dow gained 1%, and the Nasdaq, a tech-heavy index, lost 0.17%.

Heading into today, shares of the miner had gained 0.42% over the past month, outpacing the Basic Materials sector's loss of 3.64% and the S&P 500's loss of 6.94% in that time.

Wall Street will be looking for positivity from Southern Copper as it approaches its next earnings report date. The company is expected to report EPS of $1.08, down 10.74% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.82 billion, down 2.68% from the prior-year quarter.

SCCO's full-year Zacks Consensus Estimates are calling for earnings of $4.14 per share and revenue of $11.11 billion. These results would represent year-over-year changes of -5.69% and +1.63%, respectively.

Any recent changes to analyst estimates for Southern Copper should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Southern Copper is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Southern Copper's current valuation metrics, including its Forward P/E ratio of 13.83. Its industry sports an average Forward P/E of 7.89, so we one might conclude that Southern Copper is trading at a premium comparatively.

Meanwhile, SCCO's PEG ratio is currently 1.67. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. SCCO's industry had an average PEG ratio of 1 as of yesterday's close.

The Mining - Non Ferrous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 83, putting it in the top 33% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.