Silver markets managed to find some support after the strong pullback.
Meanwhile, silver stocks did not move far away from their recent lows and are trading at reasonable valuation levels.
Pan American Silver and First Majestic Silver are interesting bets on the continuation of the rebound in silver markets.
Silver prices have pulled back in recent months as higher Treasury yields put pressure on precious metals. As a result, silver stocks declined to more attractive levels. Let’s take a look at several stocks which would benefit from the potential rebound in silver markets.
Shares of Pan American Silver have recently made an attempt to settle below the $21 level after touching yearly highs above the $30 level in mid-April. The pullback in silver markets was the key driver for this move.
The recent earnings report indicated that Pan American Silver generated revenue of $439.9 million in the first quarter, beating analyst estimates. The company reported adjusted earnings of $0.15 per share, below analyst consensus.
Currently, Pan American Silver is expected to report earnings of $1.14 per share in the next year, so the stock is trading at roughly 19 forward P/E. This is not too cheap, but investors have been typically willing to pay a premium for one of the leading companies in the industry.
First Majestic Silver, which became a “meme stock” for a few days back at the start of the meme stock mania at the beginning of 2021, has also been under significant pressure in recent weeks.
The company has recently released its first-quarter results, reporting revenue of $156.8 million and an adjusted loss of $0.02 per share.
Analysts expect that First Majestic Silver will report earnings of $0.51 per share in the next year, so the stock is trading at roughly 16 forward P/E. While the recent report was rather disappointing as the company missed analyst estimates, the stock may be interesting for those traders who are willing to bet on the rebound in the silver market.
To keep up with the latest earnings updates, visit our earnings calendar.
This article was originally posted on FX Empire
A shocked Texas town struggles to make sense of school massacre
Tunisia’s panel to go ahead in writing new constitution despite academics’ rejection
Biden says he will travel to Texas in coming days
U.S. SEC unveils rules to ensure ESG funds follow through on investments
China seeks Pacific islands policing, security cooperation -document
Wall Street rallies as Fed minutes meet expectations