Why Pan American Silver (PAAS) Outpaced the Stock Market Today
In the latest close session, Pan American Silver (PAAS) was up +2.22% at $54.27. The stock outpaced the S&P 500's daily gain of 0.65%. Meanwhile, the Dow gained 0.48%, and the Nasdaq, a tech-heavy index, added 0.82%.
The silver mining company's shares have seen an increase of 5.44% over the last month, not keeping up with the Basic Materials sector's gain of 7.44% and outstripping the S&P 500's gain of 1.15%.
Analysts and investors alike will be keeping a close eye on the performance of Pan American Silver in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.87, signifying a 148.57% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $1.1 billion, reflecting a 34.81% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.21 per share and revenue of $3.53 billion, which would represent changes of +179.75% and 0%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Pan American Silver. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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 0.9% increase. Pan American Silver currently has a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Pan American Silver is holding a Forward P/E ratio of 14.48. Its industry sports an average Forward P/E of 17.91, so one might conclude that Pan American Silver is trading at a discount comparatively.
Meanwhile, PAAS's PEG ratio is currently 0.32. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Mining - Silver industry stood at 0.32 at the close of the market yesterday.
The Mining - Silver industry is part of the Basic Materials sector. With its current Zacks Industry Rank of 110, this industry ranks in the top 45% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Pan American Silver Corp. (PAAS): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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