Pan American Silver (PAAS) Beats Stock Market Upswing: What Investors Need to Know
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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%.
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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.