Back to top

Image: Bigstock

Strength Seen in Pan American Silver (PAAS): Can Its 6.8% Jump Turn into More Strength?

Read MoreHide Full Article

Pan American Silver (PAAS - Free Report) shares soared 6.8% in the last trading session to close at $17.58. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 1.3% gain over the past four weeks.

Shares of Pan American Silver have gained in tandem with the recent rally in gold and silver prices. The metals are gaining on a weaker dollar and safe-haven demand fueled by the U.S and European banking turmoil.

This silver mining company is expected to post quarterly earnings of $0.06 per share in its upcoming report, which represents a year-over-year change of -60%. Revenues are expected to be $439.66 million, down 0.1% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Pan American Silver, the consensus EPS estimate for the quarter has been revised 54.1% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on PAAS going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Pan American Silver is a member of the Zacks Mining - Silver industry. One other stock in the same industry, Hecla Mining (HL - Free Report) , finished the last trading session 3.7% higher at $5.59. HL has returned 6.1% over the past month.

Hecla Mining's consensus EPS estimate for the upcoming report has changed -75% over the past month to $0.01. Compared to the company's year-ago EPS, this represents no change. Hecla Mining currently boasts a Zacks Rank of #3 (Hold).


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Hecla Mining Company (HL) - free report >>

Pan American Silver Corp. (PAAS) - free report >>

Published in