Why Did Southern Copper Plunge 5.34% Ahead of Earnings?

On April 3, 2025, Southern Copper's stock experienced a 5.34% drop in pre-market trading, reflecting a significant decline in investor sentiment.

Southern Copper's recent performance has been mixed, with the stock showing a 9.26% increase over the past month. This outpaces the Basic Materials sector's gain of 0.34% and the S&P 500's loss of 5.28%. The company's upcoming earnings report is highly anticipated, with analysts expecting earnings of $1.05 per share, marking a year-over-year growth of 11.7%. Revenue is projected to reach $2.79 billion, a 7.48% increase from the same quarter last year.

Analysts' estimates for Southern Copper have seen a 1.22% increase in the consensus EPS projection over the past 30 days. The stock currently holds a Zacks Rank of #3 (Hold), indicating a neutral outlook. Valuation metrics show Southern Copper trading at a Forward P/E ratio of 20.28, higher than its industry average of 18.8. The PEG ratio stands at 1.84, compared to the industry average of 0.79, suggesting that the stock may be overvalued relative to its growth prospects.

The Mining - Non Ferrous industry, to which Southern Copper belongs, is currently ranked 188 out of over 250 industries, placing it in the bottom 25%. This ranking reflects the industry's underperformance and potential challenges ahead. Investors should closely monitor any changes in analyst estimates and industry trends, as these factors can significantly impact Southern Copper's stock price.