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

Pan American Silver (PAAS) ended the recent trading session at $55.58, demonstrating a +1.74% change from the preceding day's closing price. This change outpaced the S&P 500's 0.72% gain on the day. At the same time, the Dow added 0.48%, and the tech-heavy Nasdaq gained 1.16%.

Heading into today, shares of the silver mining company had lost 11.3% over the past month, outpacing the Basic Materials sector's loss of 11.5% and lagging the S&P 500's loss of 4.99%.

The upcoming earnings release of Pan American Silver will be of great interest to investors. The company is expected to report EPS of $1.13, up 169.05% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.29 billion, up 66.76% from the prior-year quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.48 per share and a revenue of $5.19 billion, signifying shifts of +76.38% and +43.32%, respectively, from the last year.

Investors should also pay attention to any latest changes in analyst estimates for Pan American Silver. 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 shows that these estimate changes are directly correlated with near-term stock prices. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 11.07% higher. Pan American Silver currently has a Zacks Rank of #1 (Strong Buy).

In terms of valuation, Pan American Silver is presently being traded at a Forward P/E ratio of 12.18. This expresses a discount compared to the average Forward P/E of 14.8 of its industry.

Meanwhile, PAAS's PEG ratio is currently 0.45. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Mining - Silver industry was having an average PEG ratio of 0.45.

The Mining - Silver industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 99, putting it in the top 41% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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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