Southern Copper (SCCO) Sees a More Significant Dip Than Broader Market: Some Facts to Know

Core Viewpoint - Southern Copper's stock performance has shown a decline recently, with a notable drop compared to major indices, while the company is expected to report lower earnings and revenue in the upcoming earnings release [1][2]. Company Performance - Southern Copper's stock closed at $104.51, reflecting a -1.28% change from the previous day, underperforming the S&P 500, which lost 0.79% [1]. - Over the past month, shares of Southern Copper have gained 10.69%, outperforming the Basic Materials sector's gain of 4.52% and the S&P 500's gain of 5.22% [1]. Earnings Expectations - The upcoming earnings report is anticipated to show an EPS of $1.09, which is a decrease of 10.66% from the same quarter last year [2]. - The Zacks Consensus Estimate for revenue is projected at $2.9 billion, down 6.86% from the previous year [2]. - Full-year estimates predict earnings of $4.75 per share and revenue of $12.21 billion, indicating year-over-year increases of +9.7% and +6.82%, respectively [3]. Analyst Estimates - Changes in analyst estimates for Southern Copper are crucial as they reflect the shifting dynamics of business performance [4]. - The Zacks Rank system, which incorporates these estimate changes, currently ranks Southern Copper at 3 (Hold) [6]. Valuation Metrics - Southern Copper has a Forward P/E ratio of 22.3, which is lower than the industry average of 23.25 [7]. - The company has a PEG ratio of 2.37, compared to the Mining - Non Ferrous industry's average PEG ratio of 0.89 [8]. Industry Context - The Mining - Non Ferrous industry, part of the Basic Materials sector, holds a Zacks Industry Rank of 69, placing it in the top 28% of all industries [9].