Southern Copper Corporation (SCCO): Today's Featured Basic Materials 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 Basic Materials sector higher today making it today's featured basic materials winner. The sector as a whole closed the day up 0.5%. By the end of trading, Southern Copper Corporation rose 68 cents (1.9%) to $35.61 on average volume. Throughout the day, 2.2 million shares of Southern Copper Corporation exchanged hands as compared to its average daily volume of 2.1 million shares. The stock ranged in a price between $35-$35.67 after having opened the day at $35.53 as compared to the previous trading day's close of $34.93. Other companies within the Basic Materials sector that increased today were: Cereplast ( CERP), up 22.1%, GeoGlobal Resources ( GGR), up 12.3%, Cubic Energy ( QBC), up 12%, and Oxford Resource Partners ( OXF), up 11.3%.
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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 $29.41 billion and is part of the metals & mining industry. The company has a P/E ratio of 15.3, below the S&P 500 P/E ratio of 17.7. Shares are up 15.7% year to date as of the close of trading on Tuesday. 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 solid stock price performance, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the basic materials sector could consider Materials Select Sector SPDR ( XLB) while those bearish on the basic materials sector could consider ProShares Short Basic Materials Fd ( SBM).

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