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 3.8%. By the end of trading, Southern Copper Corporation fell $1.06 (-3.8%) to $27.06 on average volume. Throughout the day, 2,782,703 shares of Southern Copper Corporation exchanged hands as compared to its average daily volume of 2,052,300 shares. The stock ranged in price between $26.57-$27.72 after having opened the day at $27.70 as compared to the previous trading day's close of $28.12. Other companies within the Metals & Mining industry that declined today were: Golden Minerals ( AUMN), down 18.2%, Prospect Global Resources ( PGRX), down 17.2%, Walter Energy ( WLT), down 16.1% and Quaterra Resources ( QMM), down 15.3%.
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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 $23.9 billion and is part of the basic materials sector. The company has a P/E ratio of 13.2, below the S&P 500 P/E ratio of 17.7. Shares are down 25.7% year to date as of the close of trading on Friday. 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, 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, Lake Shore Gold ( LSG), down 37.1%, Brigus Gold ( BRD), down 17.2%, Golden Star Resources ( GSS), down 15.3% and USEC ( USU), down 11.0%.

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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