Is Trends Stock Southern Copper Corporation (SCCO) now a purchase?

South copper (SCCO) was recently on the list of the most sought -after stocks from Zacks.com. Therefore, you may want to take some of the key factors into account that could influence the performance of the share in the near future.

Last month, the shares of this miner returned -5.1% of Zacks S&P 500 Composite compared to the change of -0.7%. During this time, the Zacks Mining -not -iron industry in which the southern copper falls, has lost 4.5%. The key question now is: What could be the future direction of the stock?

While media publications or rumors about a significant change in the business prospects of a company usually carry out its shares as a “trend” and lead to an immediate change in price, there are always some basic facts that ultimately dominate the purchase and hate decision finding.

Here at Zacks we prioritize the evaluation of the change in the projection of the future income of a company above all. This is because we believe that the current value of his future profit current determines the current value for its shares.

We essentially take a look at how analysts that cover the shares reveal their profit estimates in order to reflect the effects of the latest business trends. And if the profit estimates for a company rise, the current value for its shares increases. A higher atmosphere to be used than the current market price gives investors the interest for buying the share, which leads at a higher price. For this reason, empirical research shows a strong correlation between trends in the revisions of the yield estimate and short -term share price movements.

The southern copper is expected to make a profit of $ 1.09 per share in the current quarter, which corresponds to a change of -10.7%compared to the previous year. In the past 30 days, the Zacks Consensus estimate has changed by -5.2%.

For the current financial year, the consensus estimate of $ 4.41 changes to a change of +1.9% compared to the previous year. In the past 30 days, this estimate has changed -4.8%.

For the next financial year, the consensus estimate of 4.63 USD shows a change of +5% compared to what southern copper is expected a year ago. The estimate of +1.6%has changed last month.

With an impressive external, tested success balance sheet is our proprietary stock assessment tool and the Zacks-rank-rank-a more cozy indicator for the short-term price-performance of a share, since it effectively uses the power of the profit assessment revisions. The size of the recent change in the consensus estimate and three other factors in connection with the profit estimates led to a Zacks rank #3 (Hold) for Mediterranean copper.

The following table shows the development of the company's 12-month consensus EPS EPS estimate:

12-month consensus EPS estimate for SCCO _12monthepscharturl

While profit growth is probably the most superior indicator of a company's financial health, nothing happens than such if a company cannot increase its income. After all, it is almost impossible for a company to increase its income over a longer period of time without increasing its income. It is therefore important to know the potential sales growth of a company.

In the case of Southern Copper, the consensus sales of $ 2.95 billion refers to a change of -5.5%compared to the previous year. The estimates of $ 11.9 billion and 11.49 billion US dollars for the current and next financial years indicate changes of +4.1% or -3.5%.

Southern Copper reported sales of $ 3.12 billion in the last quarter, which corresponds to a change of +20.1%compared to the previous year. EPS of USD 1.19 for the same period comparable to $ 0.94 a year ago.

Compared to the Zacks Consensus estimate of 2.98 billion US dollars, the registered income is a surprise of +4.67%. The EPS surprise was +5.31%.

In the last four quarters, the southern copper exceeded the consensus -epseps three times. The company has achieved three times consensus sales estimates three times during this period.

Without taking into account the assessment of a share, no investment decision can be efficient. When predicting the future price performance of a share, it is crucial to determine whether the current price correctly reflects the internal value of the underlying business and the company's growth prospects.

The comparison of the current value of the valuation multipliers of a company, such as

The Zacks Value Style Score (part of the Zacks Style Scores Systems), which pays attention to the grade of stocks from A to F both traditional and unconventional valuation metrics (AA is better than a C; and so on) is rather helpful to identify whether a share is overrated, legally valued or temporarily accommodated.

Southern Copper is evaluated on this Front D, which indicates that it is a bonus with his colleagues. Click here to display the values of some evaluation metrics that have driven this grade.

The facts discussed here and a lot of other information about Zacks.com could help determine whether it is worth paying attention to the market for the southern copper market or not. However, the Zacks ranked 3rd indicate that it is in line with the broader market at short notice.

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This article was originally published in Zack's Investment Research (Zacks.com).

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