Southern Copper stock: buy or sell?
Dec 1st, 2020
Southern Copper stock brief
- After making new all-time highs last Friday, Southern Copper closed on Tuesday at $60.15 moving up a 1.31%
- HSBC published a hold rating for Southern Copper on Tuesday, targeting $48.50
- Southern Copper Corporation engages in mining, exploring, smelting, and refining copper and other minerals in Peru, Mexico, Argentina, Ecuador, and Chile.
Should I buy Southern Copper stock?
All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $SCCO stock a buy?
Currently, Southern Copper stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean $SCCO will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems
Should I sell Southern Copper stock?
When is it time to sell Southern Copper stock?. Trading strategies give us the ability us to avoid impetuous decisions based on our personal sentiments or the noise that surrounds the market. When selling, as well as buying, detailed setups are very simple to use and are only valid for selling shares you already own, not for selling short Southern Copper stock
A guiding principle is that you should not mantain an investment that yields greater losses than those expected upon the buy. The timing to sell shares always has to be dictated by the stop-loss (automatic or manual)
Is it time to sell Southern Copper stock?
Currently, Southern Copper stock doesn't match any of our preferred sell setups, so if you hold Southern Copper stock and your operation is in profit probably is not time to sell now
Southern Copper ratings
In the last 30 days, just one brokerage rating was published for Southern Copper
|Dec 1st, 2020|
|HSBC||Neutral → Neutral|
Southern Copper stock analysis
Since last March, Southern Copper has been printing an uptrend that by now marked an amazing 162.89%. During this uptrend, the price provided some entry points on the breakouts. Latest low was last September, when price bounced at $42.87. Southern Copper broke out above $48.74 (its last top) last October. That breakout was a good entry point that resulted in a 23.41% gain
$SCCO at Highs
Last Friday, Southern Copper marked new all-time highs (ATH) again at $61.28. Stock rallied fast in the last 2 weeks, cracking new all-time highs 4 times
Supports and resistances
Price is at all-time highs and there are not upper resistance levels.
The current support levels are:
Since the price surpassed the upper band last Friday, the price corrected downwards by 1.84%. The price is moving near to the upper Bollinger band, poiting some level of overbought in recent sessions. This is not a bearish indicator, as price can trade in these levels for many days and weeks
Relative strength index
Crossed over the 70 level Tuesday, marking a reading of 73.77. Breaking through above the overbought zone is not a bearish signal, as stocks can be above the level of 70 for many, many weeks and continue to rise
Southern Copper stock price history
Southern Copper IPO was on Jan 5th, 1996 at $0.56 per share1. Since then, SCCO stock has risen by 10,641.07%, with an average of 443.38% per year. An investment of thousand dollars at that time would have a value of $107,410.71 today.
1: Adjusted price after possible price splits or reverse-splits
Price target for Southern Copper stock
How much a stock will be priced tomorrow or next week is quite unpredictable. However, many stock price predictions are published every day by banks, financial institutions and independent analysts.
Along with buy or sell recommendations, financial institutions publish their price predictions based on the stock price action and the company fundamental data. Most of these forecasts follow the publication of new financial data by the company, and many times. Again, these forecasts are not direct recommendations for individual traders and should not be trusted blindly.
There is just one price target issued for Southern Copper that forecasts a price of $48.50.
|Brokerage firm||Price target|
|Dec 1st, 2020|
Earnings and financials
Last October, Southern Copper Corporation ($SCCO) reported adjusted EPS for that strongly enhanced Market expectations. Quarterly EPS was $0.65 per share compared to the forecasted $0.55. This quarterly report means an earnings surprise of 18.18%.In contrast, the EPS for the same quarter last year was $0.40, so posted EPS is a increase of 62.50%. Revenue exploded a 14.50% on an annualized basis in the , from $18.6B to $21.3B last quarter.
Southern Copper ($SCCO) is presenting earnings report next February. Forecasted for this quarter is $0.56, compared to $0.65 that was reported for Q3.
Southern Copper competitors
Southern Copper is part of the Basic Materials sector and the Copper industry, which contain 3 industry peers.
The following are Southern Copper major competitors:
|Company||Market cap||Rating||Bullish ratings1|
|Southern Copper ($SCCO)||$43.3B||Neutral||0|
|Turquoise Hill Resources ($TRQ)||$1.9B|| ||1|
|Hudbay Minerals Inc. (Canada) ($HBM)||$1.7B||Buy||6|
1 In the last 30 days.
Southern Copper performance
To better understand Southern Copper stock performance you must compare its gains with other related stocks in same sector or industry.. For Southern Copper, the benchmark is made against Freeport-McMoRan, Turquoise Hill Resources and Hudbay Minerals Inc. (Canada).
|Southern Copper ($SCCO)||14.80%||25.00%||60.60%|
|Turquoise Hill Resources ($TRQ)||23.00%||-15.80%||21.00%|
|Hudbay Minerals Inc. (Canada) ($HBM)||41.30%||40.40%||111.70%|
Important note:The opinions expressed in this article are personal and should not be followed as recommendations for you to buy or sell shares. The author of this document does not know the specific positions of the reader, his or her financial statements or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Comments are published for general educational purposes only
Southern Copper summary
|Tuesday, December 1st, 2020|
|Day range||$59.79 - $60.98|
|Average true range||$1.80|
|50d mov avg||$50.82|
|100d mov avg||$47.82|
|200d mov avg||$40.37|
|Earnings date||February 23rd, 2021|