Top Silver Stocks for Q1 2020

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Silver stocks, which are primarily involved in mining, are driven by their use in a wide range of industrial processes, and also by the metal’s traditional role, along with gold, as a safe haven asset. Silver stocks’ performance also is driven by the yield on bank CDs or Treasury bonds. As reflected by the Global X Silver Miners ETF (SIL), these stocks have lagged behind the S&P 500 Index, posting a 12-month price change of 18.5%, compared to 26.2% for the S&P. All numbers are as of January 13.

All the silver companies in this report are headquartered in Canada and the primary trading venue for their shares is the Toronto Stock Exchange, but they also trade on U.S. exchanges. Both the Toronto and U.S. ticker symbols are listed in the tables below. All figures are quoted in Canadian dollars. The exchange rate on January 13 was approximately $0.77 U.S. to each $1.00 Canadian.

Silver Stocks with the Best Value

Here is the silver stock with the lowest 12-month trailing price-to-earnings (P/E) ratio in the sector. The next two cheapest silver stocks nonetheless have P/E ratios so high that they cannot be considered as “value” stocks. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows you’re paying less for each dollar of profit generated.

Silver Stock with the Best Value
  Price ($) Market Cap ($B) 12-Month Trailing P/E
Silvercorp Metals Inc. (SVM.TO, SVM) 7.18 1.2 20.7
Source: Investopedia Markets
  • Silvercorp Metals Inc.: Silvercorp’s operations are in China, where it has become the leading producer of silver in that country, as well as a major extractor of lead, zinc, and gold. In the quarterly reporting period ending on Sept. 30, 2019, which is Q2 of the company’s fiscal year 2020, Silvercorp reported EPS of $0.07, up from $0.05 during the same period in 2018. For the first six months of FY 2020, EPS were $0.14, up from $0.11 in the same period of the prior fiscal year.

Silver Stocks with the Fastest Earnings Growth

Here are the silver stocks with the highest year-over-year (YOY) earnings per share (EPS) growth for the most recent quarter. Rising earnings show that a company’s business is growing and is generating more money that it can reinvest or return to shareholders.

Silver Stocks with the Fastest Earnings Growth
  Price ($) Market Cap ($B) EPS Growth (%)
Wheaton Precious Metals Corp. (WPM.TO, WPM) 36.27 16.2 100.0
Silvercorp Metals Inc. (SVM.TO, SVM) 7.18 1.2 40.0
First Majestic Silver Corp. (FR.TO, AG) 14.39 2.9 33.3
Sources: Investopedia Markets, Wheaton Precious Metals Corp., Silvercorp Metals Inc., First Majestic Silver Corp.
  • Wheaton Precious Metals Corp.: Wheaton Precious Metals is one of the largest precious metals streaming companies in the world, with agreements to purchase all or part of the output of 19 operating gold, silver, palladium, and cobalt mines, plus the future output of 9 additional mines that are still in the development phase. Because they pay upfront for future production, streaming companies have upside leverage, should metals prices rise, but with lower risk than mining companies. In Q3 2019, Wheaton reported EPS of $0.16, up from $0.08 in the same period of 2018. For the first nine months of 2019, EPS was $0.39, down slightly from $0.40 in the same period of 2018.
  • Silvercorp Metals Inc.: Please see company description above.
  • First Majestic Silver Corp.: First Majestic owns 100% of six producing mines in Mexico. In Q3 2019, the company reported EPS of $0.04, up from $0.03 in the same period of 2018. During the first nine months of 2019, EPS was zero, but an improvement from a loss of $0.22 in the same period of 2018.

Silver Stocks with the Most Momentum

These are the silver stocks that had the greatest price appreciation over the past 12 months.

Silver Stocks with the Most Momentum
  Price ($) Market Cap ($B) 12-Month Trailing Price Change (%)
Silvercorp Metals Inc. (SVM.TO, SVM) 7.18 1.2 140.1
First Majestic Silver Corp. (FR.TO, AG) 14.39 2.9 81.2
Pan American Silver Corp. (PAAS.TO, PAAS) 29.44 6.2 48.2
Sources: Investopedia Markets, Yahoo Finance
  • Silvercorp Metals Inc.: Please see company description above.
  • First Majestic Silver Corp.: Please see company description above.
  • Pan American Silver Corp.: Founded in 1994, Pan American is the second-largest primary silver mining company in the world, with operations in Mexico, Peru, Bolivia, and Argentina. In Q3 2019, the company reported EPS of $0.18, versus a loss of $0.06 in the same period of 2018. Pan American also reported non-GAAP adjusted EPS of $0.35 in Q3 2019, compared to a loss of $0.03 in the same period of 2018, stating: The company say the non-GAAP numbers “better reflect normalized earnings as they eliminate items that in management’s judgment are subject to volatility as a result of factors, which are unrelated to operations in the period, and/or relate to items that will settle in future periods.”

Source: Investopedia

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