Stocks To Watch: Pan American Silver Corp [NASDAQ: PAAS] closed Monday’s trading session in the green. This was in line with other precious metal stocks that also recorded gains in yesterday’s session. Investors are flocking to precious metals as a hedge against increased uncertainty in the global economy. Last week, the markets were hit by news that the U.S was imposing tariffs on $300 billion worth of Chinese goods. This has been further escalated by the U.S decision to label China a currency manipulator.
As precious metal prices rise in line with growing uncertainty in the world economy, companies that deal in precious metals are gaining too. PAAS is one of the companies that are benefiting from these improved prices. The company is the 2nd largest producer of silver in the world, and has operations all across South America. This makes it a huge beneficiary of improved precious metal prices.
On top of that, the company has news coming up tomorrow. On the 7th of August, PAAS will release its financials for the quarter ending in June 2019. Analysts expect it to declare lower earnings, and the consensus estimate is an EPS of roughly $0.05. Analysts also expect revenues of around $339 million representing an increase of about 56%, when compared to the same quarter last year. If it beats these estimates, it is likely to rally in the day. To add to that, if it offers a positive outlook for the year, bullish sentiment could get even stronger. With the current bullish sentiment in precious metals, PAAS could give positive guidance for the year.
From the daily charts, PAAS could be in the early stages of a bullish reversal if current market conditions persist, and its financials beat analyst expectations.