PAN AMERICAN SILVER CORP (NYSE:PAAS) Presents a Strong Growth and Technical Setup

For investors aiming to achieve notable capital gains, a mixed method of technical and fundamental analysis can be an effective plan. The process involves searching for companies showing solid basic business growth, shown by good sales and earnings increases, while also displaying good financial condition and earnings. This fundamental quality forms the base. The plan then adds technical analysis, searching for stocks showing breakout formations from periods of sideways movement, indicating a possible quickening in price momentum as market outlook matches the company's good basic factors. This combination of good growth potential and a positive technical formation seeks to find chances where a company's true worth and market price movement might be ready to meet.

PAN AMERICAN SILVER CORP (NYSE:PAAS) appears as an example that meets this particular screening method, presenting a noteworthy case for more examination from both a growth and technical viewpoint.

Fundamental Growth Review

At its center, the plan focuses on companies with quickening or maintained growth, a main factor for future stock price gains. Pan American Silver's fundamental report notes important quality in this area, giving it a Growth Rating of 8 out of 10.

• Very Strong Recent Earnings: The company's Earnings Per Share (EPS) increased by a notable 320% over the last year, a clear sign of effective business results.
• Good Revenue Path: Revenue growth is solid, with a 21.75% rise in the last year and a sound 15.85% average yearly growth rate over recent years.
• Positive Upcoming Expectation: Experts predict this progress to persist, with estimates for yearly EPS growth of 22.19% and Revenue growth of 10.31% in the next years.

This growth story is backed by acceptable ratings in Profitability (6) and Financial Health (6). While not extremely high, these numbers show a steady foundation; the company is profitable, produces positive cash flow, and keeps a good balance sheet with a low debt level. For a growth-centered plan, this mix, exceptional growth numbers supported by satisfactory financial steadiness, is exactly the type looked for to reduce risk while aiming for gain.

You can see the complete specifics of this examination in the full fundamental report for PAAS.

Technical Formation and Momentum

A good fundamental story is most effective when it starts to be seen in the stock's price movement. The technical examination for Pan American Silver shows a chart that is now matching its positive business direction. The stock gets a high Technical Rating of 10/10 and a Setup Rating of 8/10.

• Strong Trend Agreement: Both the near-term and long-term trends are rated as positive, a very good sign that supports the upward momentum.
• Sideways Movement Close to Highs: The stock is trading near its 52-week high, having moved sideways in an area between about $49 and $57 over the last month. This time of lower fluctuation after a large rise can sometimes come before a new upward move.
• Key Resistance Area: The technical examination finds a defined resistance area between $55.89 and $56.12. A maintained move above this point could be seen by the market as a sign of quality, possibly leading to more buying activity.

This technical view shows the "breakout formation" the plan looks for. The stock has displayed large relative strength, beating 97% of all stocks over the past year, and is now waiting just below a set resistance point. A move above this area would finish the formation, indicating the momentum may be starting again.

The whole technical view, including support and resistance points, is present in the complete technical analysis report for PAAS.

Valuation Background

Even for growth investors, knowing valuation is important to judge possible risk and return. Pan American Silver's Valuation Rating is a neutral 6. While its standard Price-to-Earnings (P/E) ratio seems high next to the S&P 500, this is typical for high-growth periods. More significantly, the forward P/E ratio is much lower and looks good next to both the wider market and its industry group. Also, the low PEG ratio, which includes earnings growth, implies the current price could be fair when accounting for the company's high predicted growth rate. This background is important, as it shows the market is valuing future growth but not necessarily at a very high level.

Why This Mix Is Important

The connection between the fundamental and technical reports is what makes this method noteworthy. The fundamental examination answers the why: Pan American Silver is increasing its earnings and sales at a remarkable rate. The technical examination answers the when: the stock's price movement suggests investor outlook is strongly positive and could be near to acknowledging this growth story more completely, shown by its strong trend and sideways movement near highs. One without the other can be less definite; good fundamentals with poor price movement may show the story is not yet accepted by the market, while a breakout without fundamentals can be uncertain. Their agreement, as seen with PAAS, offers a more complete investment idea.

Finding More Possibilities

Pan American Silver Corp shows how the mix of good growth fundamentals and a positive technical formation can find possible chances. For investors wanting to use this organized method to find similar examples, the screen that found PAAS is a useful beginning point.

You can find more results from this "Strong Growth Stocks with good Technical Setup Ratings" screen here.

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Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice, a recommendation, or an offer or solicitation to buy or sell any securities. The analysis presented is based on data and reports available at the time of writing and may change. Investing in stocks involves risk, including the potential loss of principal. Always conduct your own thorough research and consider your individual financial situation and risk tolerance before making any investment decisions.