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Fortuna Mining (FSM) Exceeds Market Returns: Some Facts to Consider

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In the latest trading session, Fortuna Mining (FSM - Free Report) closed at $10.48, marking a +2.14% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.16%. Meanwhile, the Dow experienced a rise of 0.17%, and the technology-dominated Nasdaq saw an increase of 0.26%.

The silver and gold miner's stock has climbed by 4.91% in the past month, falling short of the Basic Materials sector's gain of 7.63% and outpacing the S&P 500's gain of 1.89%.

Market participants will be closely following the financial results of Fortuna Mining in its upcoming release.

For the full year, the Zacks Consensus Estimates are projecting earnings of $0.76 per share and revenue of $0 million, which would represent changes of +65.22% and 0%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Fortuna Mining. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Fortuna Mining boasts a Zacks Rank of #4 (Sell).

In the context of valuation, Fortuna Mining is at present trading with a Forward P/E ratio of 9.33. For comparison, its industry has an average Forward P/E of 23.92, which means Fortuna Mining is trading at a discount to the group.

The Mining - Miscellaneous industry is part of the Basic Materials sector. With its current Zacks Industry Rank of 85, this industry ranks in the top 35% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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 follow all of these stock-moving metrics, and many more, on Zacks.com.


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