Pan American Silver (PAAS) ended the recent trading session at $45.77, demonstrating a -4.73% change from the preceding day’s closing price. The stock’s performance was behind the S&P 500’s daily loss of 0.77%. Meanwhile, the Dow experienced a drop of 0.67%, and the technology-dominated Nasdaq saw a decrease of 0.92%.
The silver mining company’s shares have seen a decrease of 9.14% over the last month, not keeping up with the Basic Materials sector’s loss of 9.1% and the S&P 500’s gain of 0.96%.
The upcoming earnings release of Pan American Silver will be of great interest to investors. The company is expected to report EPS of $0.92, up 91.67% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $1.24 billion, showing a 44.52% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $3.81 per share and a revenue of $4.85 billion, demonstrating changes of +50% and +33.99%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Pan American Silver. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.55% decrease. Pan American Silver is currently a Zacks Rank #3 (Hold).
From a valuation perspective, Pan American Silver is currently exchanging hands at a Forward P/E ratio of 12.62. This denotes no noticeable deviation relative to the industry average Forward P/E of 12.62.
Also, we should mention that PAAS has a PEG ratio of 4.73. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. As of the close of trade yesterday, the Mining – Silver industry held an average PEG ratio of 4.73.
The Mining – Silver industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 222, positioning it in the bottom 10% of all 250+ industries.