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Pan American Silver (PAAS) Moves 10.6% Higher: Will This Strength Last?

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Pan American Silver (PAAS - Free Report) shares rallied 10.6% 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 5% gain over the past four weeks.

Shares of Pan American Silver have gained on the back of the surge in silver prices, which were at around $33 an ounce on Friday. Silver has gained on safe-haven demand amid uncertainty surrounding the U.S. election and rising tensions in the Middle East. Expectations of further interest rate cuts from major central banks have also boosted prices. Upbeat economic data in China has boosted the demand outlook for silver.

This silver mining company is expected to post quarterly earnings of $0.22 per share in its upcoming report, which represents a year-over-year change of +2100%. Revenues are expected to be $729.87 million, up 18.4% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Pan American Silver, the consensus EPS estimate for the quarter has been revised 6.5% 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 belongs to the Zacks Mining - Silver industry. Another stock from the same industry, Endeavour Silver (EXK - Free Report) , closed the last trading session 12.5% higher at $4.78. Over the past month, EXK has returned 18.1%.

Endeavour Silver's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0. Compared to the company's year-ago EPS, this represents a change of +100%. Endeavour Silver currently boasts a Zacks Rank of #3 (Hold).


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