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

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 lower today making it today's featured Metals & Mining laggard. The industry as a whole closed the day down 3.5%. By the end of trading, Southern Copper Corporation fell $1.04 (-2.9%) to $34.80 on average volume. Throughout the day, 1.8 million shares of Southern Copper Corporation exchanged hands as compared to its average daily volume of two million shares. The stock ranged in price between $34.66-$35.65 after having opened the day at $35.64 as compared to the previous trading day's close of $35.84. Other companies within the Metals & Mining industry that declined today were: Quaterra Resources ( QMM), down 13.3%, Novagold Resources ( NG), down 13%, Alexco Resource ( AXU), down 12.3%, and Lake Shore Gold ( LSG), down 10.3%.
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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 $30.65 billion and is part of the basic materials sector. The company has a P/E ratio of 15.9, below the S&P 500 P/E ratio of 17.7. Shares are down 5.3% year to date as of the close of trading on Thursday. Currently there is one analyst that rates Southern Copper Corporation a buy, three analysts rate it a sell, and five 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 expanding profit margins, solid stock price performance, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

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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