A Closer Look
Fortuna Silver Mines (FSM) recently closed its trading session at $4.68, marking a slight decline of 0.21% from the previous day. While the stock underperformed the S&P 500's daily gain of 0.91%, it has shown positive momentum over the past month, gaining 2.63%. This outperforms both the Basic Materials sector's loss of 2.19% and the S&P 500's loss of 4.2% during the same period.
Investors eagerly await Fortuna Silver Mines' upcoming earnings report, scheduled for release on May 7, 2024. Analysts predict an EPS of $0.03, representing a 40% decrease compared to the corresponding quarter of the previous year. Close attention should be paid to any recent changes in analyst estimates, as these revisions often reflect the latest business trends and can impact the stock's near-term performance.
The Zacks Rank system, which takes into account these estimate changes, has assigned Fortuna Silver Mines a #1 (Strong Buy) rating. This ranking system has a proven track record of outperforming, with stocks rated #1 generating an average annual return of +25% since 1988. Additionally, the Zacks Consensus EPS estimate for Fortuna Silver Mines has increased by 166.67% over the past month, further bolstering its positive outlook.
In terms of valuation, Fortuna Silver Mines currently trades at a Forward P/E ratio of 58.63, which is higher than the industry average of 43.7. The Mining - Silver industry, where Fortuna Silver Mines operates, belongs to the Basic Materials sector and holds a Zacks Industry Rank of 24, placing it within the top 10% of all industries. This ranking system, based on the average Zacks Rank of individual stocks within each industry, highlights the strength and potential of the Mining - Silver industry. Research suggests that the top 50% rated industries outperform the bottom half by a significant margin.