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Strength Seen in Pan American Silver (PAAS): Can Its 12.4% Jump Turn into More Strength?

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Pan American Silver (PAAS - Free Report) shares rallied 12.4% in the last trading session to close at $24.41. 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 11.3% loss over the past four weeks.

Pan American Silver’s shares have gained reflecting the spike in gold and silver prices amid rising U.S-China trade tensions. Trump dropped new tariff rates on imports from most U.S. trade partners to 10% for 90 days but top consumer China remains subject to a steep 125% tariff.

This silver mining company is expected to post quarterly earnings of $0.23 per share in its upcoming report, which represents a year-over-year change of +2200%. Revenues are expected to be $714.95 million, up 18.9% 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 been revised 0.5% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. 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 is part of the Zacks Mining - Silver industry. Avino Silver (ASM - Free Report) , another stock in the same industry, closed the last trading session 17.1% higher at $1.71. ASM has returned 3.6% in the past month.

Avino Silver's consensus EPS estimate for the upcoming report has changed -50% over the past month to $0.01. Compared to the company's year-ago EPS, this represents a change of -50%. Avino Silver currently boasts a Zacks Rank of #3 (Hold).


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