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

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 0.2%. By the end of trading, Southern Copper Corporation fell $1.02 (-3.1%) to $31.72 on average volume. Throughout the day, 2,880,693 shares of Southern Copper Corporation exchanged hands as compared to its average daily volume of 2,028,100 shares. The stock ranged in price between $31.28-$32.09 after having opened the day at $32.00 as compared to the previous trading day's close of $32.74. Other companies within the Metals & Mining industry that declined today were: China Shen Zhou Mining & Resources ( SHZ), down 24.4%, Revett Minerals ( RVM), down 23.5%, China Gengsheng Minerals ( CHGS), down 11.1% and Timberline Resources Corporation ( TLR), down 8.9%.
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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 $27.8 billion and is part of the basic materials sector. The company has a P/E ratio of 15.3, below the S&P 500 P/E ratio of 17.7. Shares are down 13.5% year to date as of the close of trading on Wednesday. Currently there is 1 analyst that rates Southern Copper Corporation a buy, 1 analyst rates it a sell, and 6 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, increase in stock price during the past year, 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 has had somewhat weak growth in earnings per share.

On the positive front, Sinocoking Coal and Coke Chemicals ( SCOK), down 10.7%, Gold Standard Ventures ( GSV), down 9.3%, Quaterra Resources ( QMM), down 8.5% and USEC ( USU), down 8.0% , were all gainers within the metals & mining industry with Yamana Gold ( AUY) being today's featured metals & mining industry leader.

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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