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Pan American Silver (PAAS) Stock Slides as Market Rises: Facts to Know Before You Trade

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In the latest trading session, Pan American Silver (PAAS - Free Report) closed at $18.80, marking a -1.52% move from the previous day. This move lagged the S&P 500's daily gain of 0.03%. Elsewhere, the Dow gained 0.41%, while the tech-heavy Nasdaq added 0.12%.

The silver mining company's stock has climbed by 34.53% in the past month, exceeding the Basic Materials sector's gain of 0.24% and the S&P 500's loss of 0.9%.

Market participants will be closely following the financial results of Pan American Silver in its upcoming release. The company's upcoming EPS is projected at -$0.04, signifying a 140% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $599.2 million, indicating a 53.52% growth compared to the corresponding quarter of the prior year.

PAAS's full-year Zacks Consensus Estimates are calling for earnings of $0.44 per share and revenue of $2.6 billion. These results would represent year-over-year changes of +266.67% and +12.15%, respectively.

Investors might also notice recent changes to analyst estimates for Pan American Silver. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 39.37% rise in the Zacks Consensus EPS estimate. Pan American Silver is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Pan American Silver currently has a Forward P/E ratio of 43.49. For comparison, its industry has an average Forward P/E of 38.14, which means Pan American Silver is trading at a premium to the group.

Investors should also note that PAAS has a PEG ratio of 1.95 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Mining - Silver industry was having an average PEG ratio of 1.95.

The Mining - Silver industry is part of the Basic Materials sector. With its current Zacks Industry Rank of 202, this industry ranks in the bottom 20% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply to follow these and more stock-moving metrics during the upcoming trading sessions.

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