Southern Copper (SCCO) Beats Stock Market Upswing: What Investors Need to Know

Core Viewpoint - Southern Copper (SCCO) has shown strong performance in the market, with significant gains in both stock price and expected earnings, indicating positive investor sentiment and potential growth opportunities. Group 1: Stock Performance - Southern Copper closed at $182.97, reflecting a +1.5% increase from the previous trading session, outperforming the S&P 500's gain of 0.26% [1] - Over the past month, shares of Southern Copper have increased by 27.44%, significantly surpassing the Basic Materials sector's gain of 8.62% and the S&P 500's gain of 1.57% [1] Group 2: Earnings Expectations - The upcoming earnings release is anticipated to show an EPS of $1.44, representing a 42.57% increase from the same quarter last year, with expected revenue of $3.62 billion, indicating a 30.11% rise [2] - For the entire year, earnings are forecasted at $5.3 per share and revenue at $13.17 billion, reflecting a +22.4% change in earnings and no change in revenue compared to the previous year [3] Group 3: Analyst Estimates and Rankings - Recent modifications to analyst estimates for Southern Copper suggest a positive outlook for near-term business trends, with positive revisions indicating analysts' confidence in the company's performance [4] - The Zacks Rank system currently rates Southern Copper at 3 (Hold), with a consensus EPS projection that has increased by 1.83% in the past 30 days [6] Group 4: Valuation Metrics - Southern Copper has a Forward P/E ratio of 28.85, which is higher than the industry average Forward P/E of 27.92, indicating a premium valuation [7] - The company has a PEG ratio of 1.51, compared to the Mining - Non Ferrous industry average PEG ratio of 0.74, suggesting that Southern Copper's projected earnings growth is being factored into its valuation [7] Group 5: Industry Context - The Mining - Non Ferrous industry, part of the Basic Materials sector, holds a Zacks Industry Rank of 20, placing it in the top 9% of over 250 industries, indicating strong performance relative to peers [8]