Nexa Resources (NEXA) drew fresh attention after reporting second quarter sales of US$907.94 million and net income of US$68.61 million, along with reaffirmed 2026 production guidance and mixed trends across its key metals portfolio.

Nexa Resources' latest results and reaffirmed 2026 guidance come after a strong year to date, with the share price at US$14.33 and a year to date share price return of 63.03%. The 1 year total shareholder return of 196.69% and 3 year total shareholder return of 188.70% suggest momentum has been strong despite some recent share price softness over the past quarter.

If Nexa Resources' move has you looking at metals and miners more broadly, it could be worth scanning other copper related plays through the 9 top copper producer stocks.

After Nexa Resources' sharp year to date move and strong recent quarter, the real tension now is simple: Is most of the rerating already behind the stock, or do the current valuation markers still point to further upside ahead?

Most Popular Narrative: 4.5% Undervalued

The most followed narrative on Nexa Resources pegs fair value at $15 per share, slightly above the last close at $14.33, and frames the recent share price surge against that backdrop.

The bull case is straightforward: the stock is priced as if current earnings are unsustainable, yet Nexa is showing improving operations, stronger cash generation, and declining leverage. If zinc prices stay constructive and the company executes on mine plans and smelter throughput, the equity can re-rate sharply from today’s depressed valuation.

The narrative focuses on Nexa Resources converting its current profit base into future cash flow. It also applies a discount rate that reflects metals cyclicality and balance sheet repair. This raises the question of how the projections for revenue mix, earnings power and margins combine to support a higher fair value than today’s price without relying on aggressive growth assumptions.

Result: Fair Value of $15 (UNDERVALUED)

However, Nexa Resources still faces clear risk triggers, including weaker zinc pricing and operational setbacks across its Latin American mines and smelters that could quickly pressure sentiment.

Next Steps

Mixed signals on Nexa Resources' recent performance and future path can leave investors split, so it makes sense to move quickly and weigh the trade off between risks and rewards for yourself by reviewing the 3 key rewards and 2 important warning signs.

Looking for more investment ideas beyond Nexa Resources?

If Nexa Resources has sharpened your interest, do not stop here. Use curated stock lists to quickly spot fresh ideas that fit the kind of portfolio you want.

• Target potential mispricing by scanning companies that combine quality fundamentals with appealing valuations through the 51 high quality undervalued stocks.
• Strengthen your income stream by reviewing stocks that aim for higher yields and resilient payouts using the 11 dividend fortresses.
• Reduce portfolio stress by focusing on companies with resilient financial profiles through the 88 resilient stocks with low risk scores.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.