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.
