Industry insiders call the burnished metal "Dr. Copper" because it's a good indicator of how the economy is faring. Based on how highly rated Southern Copper is doing, the economy is doing all right, despite its aggravating volatility. Southern Copper is expected to report earnings on April 27. It's now trading just 4% below the 76.88 buy point from a first-stage cup with handle that it cleared earlier.
Southern Copper Has Near-Best Composite Rating
Southern Copper has a 93 EPS Rating after posting hefty profit growth numbers this past year. Its 89 Relative Strength Rating puts it in the top 11% of all stocks in terms of price performance over the past year.
Southern Copper also has a near-best 98 Composite Rating of 99, and holds the No. 3 rank among its peers in the Mining-Metal Ores industry group. BHP Billiton is the top-ranked stock in the group.
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Southern Copper recorded a 42% surge in earnings last quarter to $1.08 per share. Sales grew 20% to $2.82 billion.
Analysts expect earnings-per-share growth of 7% for the quarter, and -5% growth for the full year. However, its estimates for the full year were recently revised upward amid a general surge in the commodities sector.
It's risky to buy any stock just before it reports. Minimize exposure by waiting to see how the company reports and how the market reacts. Using an options strategy during earnings season is another way to get into position to profit, while minimizing the potential downside.
Note: Dates for earnings reports are subject to change. Check the company's website for any updates.
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