SVM - Here's Why I'm Stacking Silver Stocks Today
The spot price of silver has remained mostly flat since climbing into the mid-$20 price range in the middle of 2020. Earlier this week, I’d looked at some of the top undervalued gold stocks to snatch up in this environment. Silver may offer even better value at this stage. Today, I want to look at three silver stocks that are worth snatching up in early April. Let’s jump in.
Here’s why gold’s little brother is undervalued right now
There has been increased interest in the precious metals market as overall volatility has picked up since late February. Russia’s large-scale invasion of Ukraine on February 24 sparked a run to gold and silver stocks. Markets have normalized since the middle of March, but there is still considerable anxiety in the air, as central banks set their sight on rate hikes. Silver has failed to rattle of the same record highs that the yellow metal has achieved since the start of the COVID-19 pandemic.
Why I’m still looking to snatch up this top silver stock
Silvercorp Metals (TSX:SVM) (NYSE:SVM) is the first silver stock I’d look to target in this climate. The Vancouver-based company is engaged in the acquisition, exploration, development, and mining of mineral properties in China and Mexico. Shares of Silvercorp have been mostly static in 2022 as of early afternoon trading on April 8.
The company unveiled its third-quarter fiscal 2022 results on February 8. It delivered revenue growth of 11% year over year to $59.1 million. Meanwhile, cash flow from operations increased 20% to $28.7 million. Moreover, it also boasts an immaculate balance sheet.
Shares of this silver stock possess a favourable price-to-earnings (P/E) ratio of 19. It offers a quarterly dividend of $0.013 per share, representing a modest 0.6% yield.
Two more silver stocks to target in early April
First Majestic Silver (TSX:FR) (NYSE:AG) is another Vancouver-based company that is engaged in the acquisition, exploration, development, and production of mineral properties with a focus on silver and gold. This silver stock has jumped 20% so far this year. Its shares have dropped 23% compared to the same period in 2021.
Investors got to see its final batch of 2021 earnings on March 10, 2022. In Q4 2021, it posted revenue growth of 64% to $204 million. For the full year, it delivered record revenue of $584 million — up 61% from the previous year. First Majestic also offers a quarterly distribution of $0.008 per share, which represents a 0.2% yield.
Fortuna Silver Mines (TSX:FVI) (NYSE:FSM) is the final silver stock I’d look to snatch up in the first half of April. This is another silver producer that is based in Vancouver. Its shares have increased 2.8% in the year-to-date period. However, the stock has plunged 45% from the prior year.
In 2021, Fortuna reported total sales of $599 million — up from $279 million in 2020. Meanwhile, adjusted net income nearly tripled to $100 million. Better yet, adjusted EBITDA more than doubled to $280 million. This silver stock possesses an attractive P/E ratio of 17.
The post Here’s Why I’m Stacking Silver Stocks Today appeared first on The Motley Fool Canada .
Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.
2022