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In the latest trading session, Pan American Silver (PAAS) closed at $25.87, marking a +0.47% move from the previous day. The stock lagged the S&P 500's daily gain of 1.77%. Elsewhere, the Dow saw an upswing of 1.42%, while the tech-heavy Nasdaq appreciated by 2.28%.
The the stock of silver mining company has risen by 5.36% in the past month, leading the Basic Materials sector's loss of 0.29% and the S&P 500's loss of 5.73%.
Market participants will be closely following the financial results of Pan American Silver in its upcoming release. The company is predicted to post an EPS of $0.28, indicating a 2700% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $731.71 million, showing a 21.67% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.26 per share and a revenue of $2.9 billion, signifying shifts of +59.49% and +2.83%, respectively, from the last year.
Any recent changes to analyst estimates for Pan American Silver should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.22% decrease. 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 20.52. Its industry sports an average Forward P/E of 22.75, so one might conclude that Pan American Silver is trading at a discount comparatively.
Also, we should mention that PAAS has a PEG ratio of 2.9. 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 2.9 at yesterday's closing price.
The Mining - Silver industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 146, finds itself in the bottom 42% echelons of all 250+ industries.