Top Silver Stocks for Q3 2020

Silver stocks are driven by the metal's use in a wide range of industrial processes, and its popularity as a safe haven asset. Silver stocks, which are primarily mining companies, also are driven by the yield on bank CDs or Treasury bonds. As reflected by the Global X Silver Miners ETF (SIL), the group has significantly outperformed the S&P 500 Index, posting a 12-month total return of 40.6%, compared to 5.8% for the S&P. All numbers are as of June 12, 2020.

All silver companies in this story are headquartered in Canada and their primary trading venue is the Toronto Stock Exchange, but they also trade on U.S. exchanges. The Toronto ticker symbols are listed in the tables below. All figures are quoted in Canadian dollars. The exchange rate on June 12 was approximately $0.75 U.S. to each $1.00 Canadian. 

Below, we'll take a look at the top silver stocks in terms of best value, fastest growth, and most momentum.

Silver Stocks with the Best Value

Here are the silver stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio in the sector. 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.

Source: YCharts

• Silvercorp Metals Inc.: Headquartered in Vancouver, Canada, Silvercorp's operations are located in China, where it has become the leading producer of silver, as well as a major extractor of lead, zinc, and gold. On June 10, the company announced that it would not exercise its "right to match" a superior offer made by a third party to buy fellow Canadian mining company Guyana Goldfields Inc. (GUY.TO).
• Fortuna Silver Mines Inc.: Fortuna Silver Mines is a Vancouver-based silver mining company whose major operations are in Peru, Mexico, and Argentina. On May 26, the company announced that it had resumed operations at its San Jose Mine located in Oaxaca, Mexico. The mine had been closed due to a lockdown imposed by the Mexican government in response to COVID-19.
• Pan American Silver Corp.: Pan American is the second-largest primary silver mining company in the world, with operations in Mexico, Peru, Bolivia, and Argentina. Following a state of emergency declaration in response to COVID-19 by the Peruvian government, Vancouver-based Pan American announced in mid-March the temporary suspension of all operations at its four mines in Peru. On June 1, the company announced the resumption of operations.

Silver Stocks with the Fastest Earnings Growth

Here are the silver stocks with the best year-over-year (YOY) earnings per share (EPS) performance for the most recent quarter. Rising earnings show that a company’s business is growing and is generating more money than it can reinvest or return to shareholders. Please note that only one of the stocks surveyed, Silvercorp Metals, was able to make a profit in the latest quarter. During that period, Silvercorp's rivals either moved from a profit to a loss, or their losses widened. While Silvercorp was able to maintain a positive EPS, its earnings shrank compared to the same quarter a year earlier.

One factor contributing to this unusually weak performance in the growth category is that the price of silver plunged in March. Prices have rebounded since then.

Source: YCharts

• Silvercorp Metals Inc.: See company description above.

Silver Stocks with the Most Momentum

These are the silver stocks that had the greatest total return over the past 12 months.

Source: YCharts

• Pan American Silver Corp.: See company description above.
• Silvercorp Metals Inc.: See company description above.
• Fortuna Silver Mines Inc.: See company description above.