Southern Copper Corporation (SCCO) shares are trading at lower $59.37 and the avg recommendation for the stock is Hold, while the current analyst price target stands at $43.97.
To add more color to this target, the company’s high over the last year is $61.28 and the low is $23.43. Over the last 52 weeks, SCCO is up 56.11% while the S&P 500 is up 15.19%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, SCCO reported a profit of $1.18 billion. Southern Copper Corporation also saw revenues increase to $2.13 billion. In addition, SCCO has free cash flow of $1.34 billion as of 09-2020. The company’s EBITDA came in at $1.14 billion which compares well with its peers.
SCCO booked profit margins of 17.20%, its Return on Equity (ROE) is 18.80%, and its Return on Assets is 8.00%. All told, it is clear that, SCCO needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. SCCO has a short ratio of 7.03 and outstanding shares of 773.10M.
SCCO has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.88 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 1.66. Southern Copper Corporation SCCO also noted assets of $16.25 billion at the end of the last quarter. Investors should also keep an eye on sector updates as SCCO has historically followed its peers on positive news.
All told, Southern Copper Corporation SCCO has strung together solid data and demonstrated underlying fundamentals. At its current valuation, SCCO represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Southern Copper Corporation SCCO is now commanding a market cap of 45.24B and a float of 83.21M. SCCO is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of SCCO stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in SCCO, either long or short, and we have not been compensated for this article.