SCCO stock: buy or sell?

SCCO stock price: $30.17 0.84% At close on August 22nd, 2019

Updated on:
August 22nd, 2019

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Southern Copper shares appreciated 0.84% to $30.17 today.

Southern Copper Corporation engages in mining, exploring, smelting, and refining copper and other minerals in Peru, Mexico, Argentina, Chile, and Ecuador.

Should I buy SCCO stock?

Make a decision about when to buy or sell stocks is one of the hardest parts of being a trader or investor. That's why is so important to choose your own trading strategy that matches with your character as inversor. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

None of our preferred buy setups matches with Southern Copper stock situation right now, hence this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is Southern Copper stock a buy?

Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we collected 6 ratings published for SCCO stock in the last 30 days.

The general sentiment of these ratings is bullish for SCCO stock, with 5 positive ratings.
Is SCCO a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-8-15Bank of American/aBuy
2019-3-19HSBCReduceHold
2019-2-19Goldman Sachs Groupn/aBuy
2019-2-19CitigroupSellBuy
2019-1-29Bank of American/aBuy
2019-1-16Itau BBA SecuritiesMarket PerformOutperform

SCCO stock analysis

Daily outlook

Southern Copper ended today at $30.17 and appreciated a slightly fine 0.84%.

Southern Copper shares appreciated 0.84% to $30.17 today. Since price and SMA200d lines crossed down on August 1st, SCCO fell $-5.18 per share (-14.65%). Since SMA100d and SMA200d crossed up on June, SCCO price slid a -17.90%. SCCO marked a lower low and a lower high in the short term, defining a downward trend. Climbing above $33.40 would break this short term down trend and open possibilities for reversing this situation.

SCCO stock chart (daily)

Weekly outlook

After sliding a chilling -6.92% in a week last week, Southern Copper closed this week at $30.17 and raised a slightly good 0.87%. This week broke a red streak of 4 weeks.

Since price and 40-weeks moving average lines crossed down late July, SCCO fell $-6.73 per share (-18.24%). Trading stocks that are below the 40-weeks (that is, 200-days) moving average line is not recommended by many experts, as it indicates that the stock has not enough institutional support. Since late May when SMA20w and SMA40w crossed up, SCCO price slipped $-2.90 per share (-8.77%).

SCCO stock chart (weekly)

SCCO stock price history

SCCO IPO was on January 5th, 1996 at $0.02 per share1. Since then, SCCO stock surged a 150,750.00%, with an average of 6,554.30% per year. If you had invested right after SCCO's IPO a $1,000 in SCCO stock in 1996, it would worth $1,507,500.00 today.

1: Adjusted price after possible price splits or reverse-splits.

SCCO stock historical price chart

SCCO stock reached 52-week highs on August at $43.32, and all-time highs 2018-04-18 with a price of 53.95.

SCCO stock price target is $45.00

How much a stock will be priced tomorrow or next week is quite unpredictable However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. For the last 30 days we found 2 price forecasts for Southern Copper stock:
SCCO stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-8-15Bank of AmericaLowers Target$46.00$42.00-8.7%
2019-1-16Itau BBA SecuritiesUpgradesn/a$48.00-
(in average)$46.00$45.00-2.0%
Moving in a range from $48.00 and $42.00, the price prediction for SCCO stock is $45.00.

Financials and fundamental analysis

Earnings date and Earnings per Share

After publishing its last earnings report on April, Southern Copper plunged a hair-raising -23.60%. As soon as we get its actual EPS from the earnings report, we will extend this review.
SCCO earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a0.39n/a
2017-Q32017-10-200.480.528.3%
2017-Q42018-04-04n/an/an/a
2018-Q12018-05-020.610.610.0%
2018-Q22018-09-26n/an/an/a
2018-Q32018-10-240.520.48-7.7%
2018-Q42019-04-03n/an/an/a
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

Compared to 2017, last anual revenues report draw an excellent gain of 6.65% to $7,096.70 million USD. When comparing 2018 vs 2017, instead, profit margin (that is, the net income divided by revenues) boosted a 10.80% to 21.74%.

SCCO annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$5,950 M-$1,620 M27.2%-
2014$5,788 M-2.73%$1,333 M23.0%-17.72%
2015$5,046 M-12.82%$736 M14.6%-44.75%
2016$5,380 M6.62%$777 M14.4%5.45%
2017$6,655 M23.69%$729 M10.9%-6.18%
2018$7,097 M6.65%$1,543 M21.7%111.81%

Quarterly financial results

Southern Copper reported $1,694.60 M in sales for 2018-Q4, a -1.69% less compared to previous quarter. Reported quarter earnings marked $293.20 million with a profit margin of 17.30%. Profit margin depreciated a -4.13% compared to previous quarter when profit margin was 21.43%. When comparing revenues to same quarter last year, Southern Copper sales marked a shocking drop down and fell a -9.10%. Looking back to recent quarterly results, Southern Copper posted 4 negative quarters in a row.
SCCO quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$1,530 M-$300 M19.6%-
2017-Q3$1,680 M9.80%$402 M23.9%34.07%
2017-Q4$1,864 M10.97%$-288 M-15.4%-171.55%
2018-Q1$1,841 M-1.24%$471 M25.6%-263.72%
2018-Q2$1,837 M-0.21%$410 M22.3%-12.98%
2018-Q3$1,724 M-6.18%$369 M21.4%-9.81%
2018-Q4$1,695 M-1.69%$293 M17.3%-20.63%
2019-Q1$1,753 M3.47%$388 M22.1%32.40%

Southern Copper ownership

When you are planning to invest in a stock, it's always worth to have a look its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Southern Copper, 89.37% of all outstanding shares are owned by its staff.

In case of Southern Copper stock, 7.86% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for SCCO stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to Southern Copper:

SCCOBBLBHPFCXRIO
Market cap$23.3 B$105.1 B$126.6 B$13.2 B$81.9 B
Total shares773.0 M2,530.0 M2,660.0 M1,450.0 M1,690.0 M
Float shares82.1 M2,640.0 M2,640.0 M1,400.0 M1,260.0 M
  - Institutional holdings (%)7.9%4.3%3.9%72.4%8.4%
  - Insider holdings (%)89.4%0.0%0.0%0.5%0.0%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

SCCO summary

Thursday, August 22nd, 2019
Open$30.18
Close$30.17
Day range$30.00 - $30.36
Previous close$29.92
Session gain0.84%
Average true range$0.92
50d mov avg$35.42
100d mov avg$36.02
200d mov avg$34.49
Daily patternlb06a
Weekly pattern

Southern Copper performance

To measure stock performance is always good to benchmark with competitors or related stocks. We chose BHP, BHP, Freeport-McMoran, Rio Tinto and Teck Resources as the bechmarking frame for Southern Copper stock.
Stock3m6m12m
SCCOSouthern Copper-8.77%-14.65%-27.84%
BBLBHP-9.44%-10.75%7.48%
BHP -9.28%-10.47%7.52%
FCXFreeport-McMoran-8.97%-30.36%-35.88%
RIORio Tinto-16.36%-12.43%6.67%
TECKTeck Resources-17.14%-30.73%-27.70%

Southern Copper competitors

One check before investing in any stock is to review a list of its competitors, in this case for Southern Copper. We chose 5 companies as Southern Copper competitors as they are in the same industry or have similar market objectives.

Latest SCCO stock news