Pan American Silver (PAAS) closed the most recent trading day at $28.96, moving +1.05% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.38%. At the same time, the Dow added 0.24%, and the tech-heavy Nasdaq gained 0.24%.
The stock of silver mining company has risen by 26.76% in the past month, leading the Basic Materials sector's gain of 4.23% and the S&P 500's gain of 6.6%.
Analysts and investors alike will be keeping a close eye on the performance of Pan American Silver in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.33, indicating a 200% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $740.32 million, showing a 7.87% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.47 per share and revenue of $3 billion. These totals would mark changes of +86.08% and +6.44%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Pan American Silver. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.58% higher within the past month. Currently, Pan American Silver is carrying a Zacks Rank of #3 (Hold).
Investors should also note Pan American Silver's current valuation metrics, including its Forward P/E ratio of 19.46. This denotes a discount relative to the industry average Forward P/E of 25.8.
It's also important to note that PAAS currently trades at a PEG ratio of 0.53. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Mining - Silver was holding an average PEG ratio of 0.53 at yesterday's closing price.
The Mining - Silver industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 26, putting it in the top 11% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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Pan American Silver Corp. (PAAS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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