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Pan American Silver (PAAS) Outperforms Broader Market: What You Need to Know

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Pan American Silver (PAAS - Free Report) closed at $19.29 in the latest trading session, marking a +1.74% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 1.07% for the day. Elsewhere, the Dow gained 0.31%, while the tech-heavy Nasdaq added 2.17%.

The silver mining company's stock has dropped by 4.44% in the past month, falling short of the Basic Materials sector's loss of 0.59% and the S&P 500's gain of 2.92%.

The investment community will be paying close attention to the earnings performance of Pan American Silver in its upcoming release. In that report, analysts expect Pan American Silver to post earnings of $0.20 per share. This would mark year-over-year growth of 1900%. Meanwhile, our latest consensus estimate is calling for revenue of $724.96 million, up 17.63% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates project earnings of $0.59 per share and a revenue of $2.75 billion, demonstrating changes of +391.67% and +18.57%, respectively, from the preceding year.

Any recent changes to analyst estimates for Pan American Silver should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 6.06% lower. At present, Pan American Silver boasts a Zacks Rank of #3 (Hold).

From a valuation perspective, Pan American Silver is currently exchanging hands at a Forward P/E ratio of 32.19. For comparison, its industry has an average Forward P/E of 23.5, which means Pan American Silver is trading at a premium to the group.

The Mining - Silver industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 51, which puts it in the top 21% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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