Is this an indication of further gains?

Southern Copper (SCCO) shares rallied 6.2% in the last trading session to close at $170.52. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock’s 8.8% gain over the past four weeks.

Southern Copper’s shares have gained on the back of higher copper prices. Copper has increased 39.2% in a year’s time and is currently trading near a record high of $6 per pound despite amid tightening supply concerns. Expectations of additional rate cuts this year and further policy easing in China is aiding the metal.

This miner is expected to post quarterly earnings of $1.46 per share in its upcoming report, which represents a year-over-year change of +44.6%. Revenues are expected to be $3.62 billion, up 30.1% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Southern Copper, the consensus EPS estimate for the quarter has been revised 17.2% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on SCCO going forward to see if this recent jump can turn into more strength down the road.

Southern Copper is a member of the Zacks Mining – Non Ferrous industry. One other stock in the same industry, First Quantum Minerals (FQVLF), finished the last trading session 4.2% higher at $28.52. FQVLF has returned 11.5% over the past month.

First Quantum Minerals’ consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.05. Compared to the company’s year-ago EPS, this represents a change of +25%. First Quantum Minerals currently boasts a Zacks Rank of #3 (Hold).