HudBay Minerals (HBM) Falls More Steeply Than Broader Market: What Investors Need to Know

In the latest close session, HudBay Minerals (HBM) was down 6.19% at $18.65. This change lagged the S&P 500's daily loss of 0.28%. Elsewhere, the Dow lost 0.44%, while the tech-heavy Nasdaq lost 0.28%.

Prior to today's trading, shares of the mining company had lost 20.26% lagged the Basic Materials sector's loss of 9.78% and the S&P 500's loss of 3.59%.

The investment community will be paying close attention to the earnings performance of HudBay Minerals in its upcoming release. The company is forecasted to report an EPS of $0.37, showcasing a 54.17% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $669.88 million, up 12.6% from the prior-year quarter.

HBM's full-year Zacks Consensus Estimates are calling for earnings of $1.59 per share and revenue of $2.78 billion. These results would represent year-over-year changes of +137.31% and +25.7%, respectively.

It is also important to note the recent changes to analyst estimates for HudBay Minerals. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 0.89% higher within the past month. HudBay Minerals currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that HudBay Minerals has a Forward P/E ratio of 12.53 right now. This denotes a discount relative to the industry average Forward P/E of 16.73.

We can also see that HBM currently has a PEG ratio of 0.27. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. HBM's industry had an average PEG ratio of 0.87 as of yesterday's close.

The Mining - Miscellaneous industry is part of the Basic Materials sector. At present, this industry carries a Zacks Industry Rank of 65, placing it within the top 27% of over 250 industries.

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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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HudBay Minerals Inc (HBM): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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