Here is what you need to know why the Southern Copper Corporation (SCCO) is a trend share

South copper (SCCO) is one of the stocks that have recently been observed by zacks.com visitors. So it could be a good idea to check some of the factors that could influence the short -term performance of the share.

Last month, the shares of this miner returned +8.4% compared to changing the Zacks S&P 500 Composite +9%. During this time, the Zacks Mining -not -iron industry, in which the southern copper falls, has increased by 10.8%. 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.

Our analysis essentially is based on how the analysts of sales pages that cover the shares revises their profit estimates in order to take into account the latest business trends. If the profit estimates for a company increase, the at the time to be accompanied by the current value for its shares. And if the at the time value of a share to be added is higher than the current market price, investors tend to buy the shares, which means that the price is upwards. For this reason, empirical studies indicate a strong correlation between trends in estimating the profits and the short -term share price movements.

The southern copper is expected to make a profit of $ 1.05 per share in the current quarter, which corresponds to a change of -13.9%compared to the previous year. In the past 30 days, the Zacks Consensus estimate has changed by -7.5%.

For the current financial year, the consensus estimate of $ 4.38 refers to a change of +1.2% compared to the previous year. In the past 30 days, this estimate has changed -1.9%.

For the next financial year, the consensus estimate of 4.62 USD shows a change of +5.4% compared to what is expected southern copper a year ago. Last month the estimate changed -1.3%.

Our proprietary stock assessment tool, The Zacks Rank, offers a strong externally tested track record and offers a more conclusive picture of the price direction of a share at short notice, as it effectively uses the power of profits. Due to the size of the recent change in the consensus estimate and three other factors in connection with the profit estimates, the southern copper is ranked 3rd (hold).

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

12-month consensus EPS estimate for SCCO _12monthepscharturl

Although the profit growth of a company is probably the best indicator of its financial health, not much happens if it cannot increase its income. It is almost impossible for a company to increase its income without increasing its sales over long periods of time. It is therefore crucial to know the potential sales growth of a company.

For Southern Copper, consensus sales for the current quarter of $ 2.9 billion shows a change of -6.9%compared to the previous year. For the current and next financial years, estimates of $ 11.88 billion and 11.49 billion US dollars +3.9% or -3.3% indicate.

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

As part of the ZACKS Style Scores system, the Zacks Value Style Score (which rates both traditional and unconventional valuation metrics) organizes shares in five groups that are rich from A to F (A is better than B; b is better than C; and so on).

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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