Stocks

Strength Seen in Southern Copper (SCCO): Can Its 5.1% Jump Turn into More Strength?

Southern Copper (SCCO) shares soared 5.1% in the last trading session to close at $66.21. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 6.5% gain over the past four weeks.

Southern Copper’s share price has gained on the back of higher copper prices. Copper prices continue to rally on growing concerns that the global energy crunch and high energy prices would hit production.

This miner is expected to post quarterly earnings of $1.13 per share in its upcoming report, which represents a year-over-year change of +73.9%. Revenues are expected to be $2.7 billion, up 27% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Southern Copper, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on SCCO going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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Southern Copper Corporation (SCCO): Free Stock Analysis Report

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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.

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