Southern Copper Corporation (SCCO): Today's Featured Metals & Mining Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Southern Copper Corporation ( SCCO) pushed the Metals & Mining industry higher today making it today's featured metals & mining winner. The industry as a whole closed the day down 0.4%. By the end of trading, Southern Copper Corporation rose 45 cents (1.4%) to $32.65 on average volume. Throughout the day, 1.8 million shares of Southern Copper Corporation exchanged hands as compared to its average daily volume of 1.6 million shares. The stock ranged in a price between $32.19-$33.03 after having opened the day at $32.34 as compared to the previous trading day's close of $32.20. Other companies within the Metals & Mining industry that increased today were: Northern Dynasty Minerals ( NAK), up 14%, Molycorp ( MCP), up 12.9%, Timberline Resources Corporation ( TLR), up 10.3%, and Quest Rare Minerals ( QRM), up 7.7%.

Southern Copper Corporation engages in mining, exploring, producing, smelting, and refining copper and other minerals in Peru, Mexico, and Chile. Southern Copper Corporation has a market cap of $27.59 billion and is part of the basic materials sector. The company has a P/E ratio of 11.6, equal to the average metals & mining industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 6.7% year to date as of the close of trading on Monday. Currently there is one analyst that rates Southern Copper Corporation a buy, two analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates Southern Copper Corporation as a buy. The company's strengths can be seen in multiple areas, such as its notable return on equity, good cash flow from operations, expanding profit margins, increase in stock price during the past year and largely solid financial position with reasonable debt levels by most measures. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

On the negative front, China Precision Steel ( CPSL), down 13.2%, Claude Resources ( CGR), down 9.5%, Crosshair Energy ( CXZ), down 9%, and Cardero Resources Corporation ( CDY), down 7.9%, were all laggards within the metals & mining industry with Peabody Energy Corporation ( BTU) being today's metals & mining industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the metals & mining industry could consider SPDR S&P Metals & Mining ETF ( XME) while those bearish on the metals & mining industry could consider PowerShares DB Base Metals Sht ETN ( BOS).
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