Silver is valued both as an industrial metal and as a precious metal. It is used in jewellery, electronics, and photography. Many investors use it as a safe haven in times of economic turmoil and sometimes as a hedge against inflation. Silver mining companies are engaged in the acquisition, exploration, development, and production of mineral properties. These companies often mine for other metals and minerals besides silver, such as zinc, lead, copper, and gold. Silver is often a byproduct produced from mining these other metals. Some big names in the industry include Wheaton Precious Metals Corp. (WPM), Hecla Mining Co. (HL), and SSR Mining Inc. (SSRM). Silver mining stocks and silver commodity prices received a lot of retail investor interest during the first quarter of the year, resulting in higher-than-average volatility for the sector.
Silver stocks, represented by the Global X Silver Miners ETF (SIL), have outperformed the broader market over the last year. SIL has provided a total return of 107.3% over the past 12 months, above the Russell 1000's total return of 74.3%. These market performance numbers and all statistics in the tables below are as of March 16, 2021.
Here are the top 3 silver stocks with the best value, the fastest growth, and the most momentum.
These are the silver stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio. 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.
|Best Value Silver Stocks|
|Price ($)||Market Cap ($B)||12-Month Trailing P/E Ratio|
|Silvercorp Metals Inc. ( SVM.TO)||CA$6.60||CA$1.2||19.6|
|Pan American Silver Corp. ( PAAS.TO)||CA$41.33||CA$8.7||37.7|
|Fortuna Silver Mines Inc. ( FVI.TO)||CA$9.07||CA$1.7||64.0|
- Silvercorp Metals Inc.: Silvercorp Metals is a Canada-based mining company that acquires, explores, and develops mineral properties in China. The company produces silver, lead, and zinc metals. Silvercorp announced in early February financial results for Q3 of its 2021 fiscal year (FY), the three-month period that ended December 31, 2020. Net income rose 41.0% as revenue climbed 19.7% compared to the year-ago quarter. Net income was boosted by revenue growth and slightly lower mine-operation costs compared to the year-ago quarter.
- Pan American Silver Corp.: Pan American Silver is a Canada-based mining company focused on the production of silver, gold, zinc, lead, and copper. The company's mining activities include exploration, extraction, processing, refining, and reclamation.
- Fortuna Silver Mines Inc.: Fortuna Silver Mines is a Canada-based mining company focused on silver mining in Latin America. The company operates silver, lead, zinc, and gold mines. Fortuna recently announced financial results for FY 2020, which ended December 31, 2020. Net income fell 9.2% as sales for the year grew 8.5%. The lower net income was partly due to a significantly higher income tax expense compared to the previous year.
These are the silver stocks with the highest year-over-year (YOY) operating income, also called operating earnings, 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. Operating income excludes non-operating income and expenses (such as investment gains or losses), one-time items, as well as interest and taxes. This helps investors get a clearer picture at the strength of the underlying business without the effect of unusual one-off events, such as large tax credits, asset sales, or lawsuit settlements. If you decided to invest in a company, it's still important to look at these one-off non-operating expenses and incomes, as they can still influence a company's overall financial health.
|Fastest Growing Silver Stocks|
|Price ($)||Market Cap ($B)||Operating Income Growth (%)|
|First Majestic Silver Corp. ( FR.TO)||CA$21.07||CA$4.7||179.9|
|Fortuna Silver Mines Inc. (FVI.TO)||CA$9.07||CA$1.7||146.6|
|Silvercorp Metals Inc. (SVM.TO)||CA$6.60||CA$1.2||61.9|
- First Majestic Silver Corp.: First Majestic Silver is a Canada-based mining company engaged in the acquisition, exploration, development, and production of mineral properties. Its primary focus is on silver production in Mexico. The company recently announced that it has agreed to acquire all of the issued and outstanding common shares of Jerritt Canyon Canada Ltd. from Sprott Mining for $470 million in shares and warrants. Jerritt Canyon owns and operates the Jerritt Canyon Gold Mine in Elko County, Nevada. The transaction is expected to close by April 30, 2021. The figure for operating income growth in the table above excludes asset impairment charges.
- Fortuna Silver Mines Inc.: See above for company description. The figure for operating income growth in the table above excludes asset impairment charges.
- Silvercorp Metals Inc.: See above for company description.
These are the silver stocks that had the highest total return over the last 12 months.
|Silver Stocks with the Most Momentum|
|Price ($)||Market Cap ($B)||12-Month Trailing Total Return (%)|
|Endeavour Silver Corp. ( EXK)||6.20||1.0||443.9|
|Fortuna Silver Mines Inc. (FVI.TO)||CA$9.07||CA$1.7||214.9|
|First Majestic Corp. (FR.TO)||CA$21.07||CA$4.7||174.0|
|Global X Silver Miners ETF (SIL)||N/A||N/A||107.3|
- Endeavour Silver Corp.: Endeavour Silver is a Canada-based mining company focused on silver properties in Mexico. It engages in property acquisition, exploration, development, mineral extraction, processing, refining, and reclamation. The company recently announced financial results for FY 2020, which ended December 31, 2020. Endeavour Silver reported net earnings of $1.2 million compared to a net loss of $48.1 million in FY 2019. Annual revenue for the year rose 17.9% despite the temporary suspension of mining operations in April and May of 2020 due to the COVID-19 pandemic.
- Fortuna Silver Mines Inc.: See above for company description.
- First Majestic Corp.: See above for company description.
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YCharts. "Financial Data." Accessed Mar. 17, 2021.
Silvercorp Metals Inc. "Silvercorp Reports Net Income of $8.4 Million, $0.05 Per Share, and Cash Flow from Operations of $23.9 Million for Q3 Fiscal 2021." Accessed Mar. 17, 2021.
Fortuna Silver Mines Inc. "Fortuna reports consolidated financial results for full year 2020." Accessed Mar. 17, 2021.
First Majestic Silver Corp. "First Majestic Announces Acquisition of Jerritt Canyon Mine in Nevada, USA." Accessed Mar. 17, 2021.
Endeavour Silver Corp. "Endeavour Silver Reports $19.9 Million Earnings in the Fourth Quarter, 2020 and $1.2 Million Earnings for the Full Year, 2020." Accessed Mar. 17, 2021.