(VIANEWS) – Southern Copper shares have seen an astounding 34.66% surge over 21 sessions, outperforming the overall market.
Southern Copper (NYSE: SCCO) shares have seen incredible price gains of 34.66% over 21 sessions, starting their upward journey on March 5th with EUR80.03 before hitting an all-time high of EUR107.77 at 19:35 EST on Tuesday 19th – marking three straight sessions of gains for its shares.
Southern Copper has seen remarkable gains compared to its broader market counterpart, measured by the New York Stock Exchange (NYSE). Yet despite this performance, its performance relative to that of NYSE is weakening and has fallen 0.6% to EUR18,107.53 since Monday; this drop may contribute to Southern Copper’s relative success.
Notably, Southern Copper’s stock has experienced an exceptional 21.09% surge since hitting its 52-week high of EUR88.40; thus indicating it has been trading at a premium to its recent historical highs. This growth could be attributable to favorable market conditions, strong fundamentals and investor optimism regarding future prospects of Southern Copper.
About Southern Copper
Southern Copper Corporation is a premier mining company engaged in the exploration, mining, smelting and refining of copper and other minerals across Peru, Mexico, Argentina, Ecuador and Chile. Their main products include copper concentrates such as blister and anode copper cathodes; molybdenum concentrate; sulfuric acid for refining silver gold materials and more. Southern Copper operates open pit mines; smelters; refineries and SX-EW plants in Mexico and Peru while managing underground mines producing zinc lead copper silver and gold production; holding concessions and exploration concessions respectively throughout Peru Mexico Argentina Ecuador and Chile and operates as subsidiary Americas Mining Corporation.
Yearly Analysis
Based on this information, Southern Copper’s stock is currently trading at EUR107.77 – significantly above its 52-week high of EUR88.40 – suggesting it may have reached overbought status and be ready for a correction.
Southern Copper’s sales growth should see an incremental uptick of 0.6% this year and 5.2% over the following 12 months due to expansion efforts and efforts at improving efficiency.
Southern Copper’s EBITDA stands at EUR48.1, indicating a healthy profit margin. When combined with anticipated sales growth, this suggests the company could be an attractive investment opportunity in the mining sector; however, investors should carefully evaluate all other factors such as debt levels, competitive landscape and overall market conditions before making any definitive investments decisions.
Technical Analysis
Southern Copper’s stock (SCCO) has experienced a precipitous decline over recent weeks, with its 50-day moving average now sitting at EUR82.66 and 200-day average standing at EUR76.97. However, its last reported volume of 1356853 represents 17.83% more than the stock’s average volume of 1066770 and may indicate renewed interest in it. Southern Copper has experienced low volatility over the last quarter, with its highest average volatility amplitude being just 1.74%. According to the stochastic oscillator, Southern Copper stock is currently considered oversold (=20), suggesting an opportunity for investors. Therefore it’s vital for traders and investors to monitor trends and indicators so they can make educated decisions about investing in Southern Copper.
Quarter Analysis
Southern Copper’s current and projected sales growth figures illustrate a negative trend. Sales growth in the current quarter has decreased 13.6% year-on-year; for next quarter’s projection it’s forecasted to decrease 7.1% further. Furthermore, Southern Copper estimates negative 41.9% and 27.6% growth estimates respectively in both quarters.
Southern Copper has also experienced a substantial quarterly revenue decline of 18.6% year-on-year, and now stands at $9.9B over twelve trailing months.
Investors should remain wary when reviewing negative growth figures when making investment decisions. It’s essential to track company performance closely in coming quarters in order to determine whether this negative trend continues or if there will be some sort of turnaround in its performance.
Equity Analysis
Southern Copper (SCCO) is a mining company focused on the exploration, development, and production of mineral resources. Established in Peru and listed on the New York Stock Exchange.
Southern Copper has an estimated forward annual dividend rate of 3.2 and an expected forward annual dividend yield of 3.97%, with their next dividend payment due on February 12, 2024.
Southern Copper’s trailing twelve months EPS was EUR3.14. Its price to earnings ratio stands at 34.32, meaning that buyers of its shares invest EUR34.32 for every euro of annual earnings generated.
ROE stands at 31.16% for the twelve trailing months. ROE measures the profitability of a business relative to shareholder’s equity; an elevated ROE indicates that profits are being generated using shareholder’s capital.
Southern Copper appears to be an attractive investment with a relatively high dividend yield, however investors should carefully consider other aspects such as its financial health, industry trends and macroeconomic conditions before making their decisions. Seek advice from an investment professional before taking any actions regarding investments.
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