Pan American Silver (PAAS) Soars 7.2%: Is Further Upside Left in the Stock?
Pan American Silver (PAAS) shares rallied 7.2% in the last trading session to close at $14.88. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 14.4% loss over the past four weeks.
Pan American Silver shares have gained after its announcement that it will restart operations at its La Colorada mine in Mexico on Oct 16, 2023, following a shift change and the transition from care and maintenance activities. On Oct 5, 2023, the company announced the temporary suspension of operating activities due to security concerns at the mine site and the surrounding area following an armed robbery of two trailers of concentrate from the operation. The company also added that this temporary suspension will not have a material impact on its consolidated production and cost guidance for 2023.
The company’s shares have also got a boost by the recent gain in silver prices. Silver prices have moved to above $22.50 per ounce, the highest level in two weeks on increased safe-haven demand triggered by the Israel-Hamas conflict. Also, expectations that the Federal Reserve will keep interest rates steady despite a rise in U.S. consumer prices have provided support to silver prices.
This silver mining company is expected to post quarterly earnings of $0.16 per share in its upcoming report, which represents a year-over-year change of +1700%. Revenues are expected to be $679.27 million, up 100.4% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Pan American Silver, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on PAAS going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Pan American Silver belongs to the Zacks Mining - Silver industry. Another stock from the same industry, Endeavour Silver (EXK), closed the last trading session 7.5% higher at $2.45. Over the past month, EXK has returned -14%.
Endeavour Silver's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.06. Compared to the company's year-ago EPS, this represents a change of +400%. Endeavour Silver currently boasts a Zacks Rank of #4 (Sell).
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