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Why the Market Dipped But Pan American Silver (PAAS) Gained Today

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In the latest trading session, Pan American Silver (PAAS - Free Report) closed at $55.39, marking a +2.9% move from the previous day. This change outpaced the S&P 500's 0.03% loss on the day. Elsewhere, the Dow saw a downswing of 0.04%, while the tech-heavy Nasdaq depreciated by 0.09%.

The stock of silver mining company has risen by 26.39% in the past month, leading the Basic Materials sector's gain of 9.22% and the S&P 500's gain of 2.57%.

The investment community will be paying close attention to the earnings performance of Pan American Silver in its upcoming release. The company is expected to report EPS of $0.87, up 148.57% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $1.09 billion, indicating a 33.53% increase compared to the same quarter of the previous year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.21 per share and revenue of $3.52 billion. These totals would mark changes of +179.75% and +24.81%, respectively, from last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Pan American Silver. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Within the past 30 days, our consensus EPS projection has moved 2.55% higher. At present, Pan American Silver boasts a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, Pan American Silver is holding a Forward P/E ratio of 24.31. This indicates a discount in contrast to its industry's Forward P/E of 25.42.

It's also important to note that PAAS currently trades at a PEG ratio of 0.51. 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 - Silver industry stood at 0.51 at the close of the market yesterday.

The Mining - Silver industry is part of the Basic Materials sector. With its current Zacks Industry Rank of 30, this industry ranks in the top 13% of all industries, numbering over 250.

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.

To follow PAAS in the coming trading sessions, be sure to utilize Zacks.com.


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