Nexa Resources (NEXA) On Improving Operations And The Case For Undervalued Shares

Nexa Resources (NEXA) drew fresh attention after its shares climbed 7% in the latest session as investors reacted to stronger trading activity and a first half 2026 adjusted EBITDA of $569 million.

That 7% jump sits against a more mixed backdrop, with Nexa Resources’ share price return up 48.01% year to date but easing over the past month, with a 30 day share price return that declined 8.19% as recent momentum has cooled.

Spot opportunities in materials with similar momentum to Nexa Resources by scanning our curated list of 16 top copper producer stocks.

After a 7% pop and a strong first half EBITDA of $569 million, Nexa Resources now sits at a more debated level. Does the current price still offer enough potential to justify the risks?

Most Popular Narrative: 13% Undervalued

Based on the most followed narrative, Nexa Resources is framed as undervalued, with a fair value of $15 against a last close of $13.01. That gap is driving a debate about whether the recent price move fully reflects the company’s earnings power and balance sheet repair.

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.

See why 5 investors see Nexa Resources as 13% undervalued.

Result: Fair Value of $15 (UNDERVALUED)

Still, Nexa Resources carries real pressure points, especially zinc price weakness or operational setbacks in its Latin American mines and smelters that could quickly sour sentiment.

Find out about the key risks to this Nexa Resources narrative.

Next Steps

With mixed sentiment around Nexa Resources already on display, this may be a time to act while the debate is fresh and weigh the 3 key rewards and 2 important warning signs.

Looking for more Nexa Resources style investment ideas?

Do not stop with Nexa Resources. Use this move as a prompt to broaden your watchlist and identify other opportunities that could reshape your portfolio.

• Look for potential mispricing by scanning companies that screen as attractively valued on quality and fundamentals through our 33 high quality undervalued stocks.
• Consider strengthening your income stream by reviewing businesses that appear capable of supporting higher yields using the 6 dividend fortresses.
• Consider dialing down portfolio stress by focusing on resilient businesses with healthier risk profiles surfaced in the 30 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.

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