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Bear of the Day: Buenaventura Mining (BVN)

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At the surface, you would think that any stock related to commodities should be doing well. There is a weak dollar, the media has been pounding the table on inflation, and we all know that purchasing power has come down. But the market is forever forward-looking. That means that today’s reality could be just a flash in a pan. What’s the reality today can be forgotten tomorrow. Nobody knows that more than analysts. They are continually keeping their eyes on the prize, looking forward to what the next major trend might by.

On the flipside of that coin, these analysts can sometimes tell when a trend will end. So when you see earnings estimates move in the wrong direction, to the downside, you should take heed. Today’s Bear of the Day is a stock that is seeing estimates move in the wrong direction. I’m talking about Zacks Rank #5 (Strong Sell) Buenaventura Mining (BVN - Free Report) .  The company is a precious metals company that engages in the exploration, mining, concentration, smelting, and marketing of polymetallic ores and metals in Peru, the United States, Europe, and Asia. It explores for gold, silver, lead, zinc, and copper metals. The company operates four operating mining units, including Uchucchacua, Orcopampa, Julcani, and Tambomayo in Peru; and San Gabriel, a mining unit under development stage. It also owns interests in Colquijirca, La Zanja, Yanacocha, Cerro Verde, El Brocal, Coimolache, Yumpaq, and San Gregorio mines, as well as Trapiche, a mining unit at the development stage. In addition, the company produces manganese sulphate, which is used in agriculture and mining industries. Further, it provides energy generation and transmission services through hydroelectric power plants; chemical processing services; insurance brokerage services; and industrial activities. 

The reason for the unfavorable rank stems from negative earnings estimate revisions coming from analysts. Over the last sixty days, analysts have been cutting estimates for the current year and next year. The negative revisions have dropped the current year Zacks Consensus Estimate from 91 cents to 84 cents while next year is off from 79 cents to 76 cents. The company has also missed earnings by an average of 13 cents per quarter for the last four quarters.

The Mining – Silver industry ranks in the Bottom 3% of our Zacks Industry Rank. Currently, there are no companies in this industry which are in the good graces of our Zacks Rank. There are several stocks which are currently Zacks Rank #3 (Hold) stocks. Among these several stocks are Endeavour Silver (EXK - Free Report) and First Majestic Silver (AG - Free Report) .


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Buenaventura Mining Company Inc. (BVN) - free report >>

Endeavour Silver Corporation (EXK) - free report >>

First Majestic Silver Corp. (AG) - free report >>