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Here's Why HudBay Minerals (HBM) Fell More Than Broader Market

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HudBay Minerals (HBM - Free Report) closed the most recent trading day at $9.72, moving -1.62% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.03%. Meanwhile, the Dow experienced a drop of 0.11%, and the technology-dominated Nasdaq saw an increase of 0.13%.

The stock of mining company has risen by 17.62% in the past month, leading the Basic Materials sector's gain of 3.05% and the S&P 500's gain of 0.6%.

The investment community will be paying close attention to the earnings performance of HudBay Minerals in its upcoming release. Simultaneously, our latest consensus estimate expects the revenue to be $551.91 million, showing a 29.7% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $0.66 per share and revenue of $2.2 billion, which would represent changes of +37.5% and +8.86%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for HudBay Minerals. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.33% higher within the past month. Currently, HudBay Minerals is carrying a Zacks Rank of #2 (Buy).

Looking at valuation, HudBay Minerals is presently trading at a Forward P/E ratio of 14.95. This signifies a discount in comparison to the average Forward P/E of 20.12 for its industry.

One should further note that HBM currently holds a PEG ratio of 0.28. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Mining - Miscellaneous industry stood at 0.76 at the close of the market yesterday.

The Mining - Miscellaneous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 153, putting it in the bottom 38% of all 250+ industries.

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

You can find more information on all of these metrics, and much more, on Zacks.com.


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