3 Silver Stocks with a Shiny Outlook
Silver often plays second fiddle to its glittering counterpart gold. However, the grey metal offers investors an attractive alternative in the year ahead, with the commodity well positioned to benefit from its store of value characteristics and improving industrial demand. “Investors are already starting to see that inflation is out there, and that’s why I like hard-assets so much,” said Crescat Capital partner Tavi Costa, per Kitco.com. “Gold looks really cheap. Silver looks really, really cheap,” he added.
Below, we take a closer look at three silver mining stocks and use technical analysis to identify important trading levels worth watching.
Pan American Silver Corp.
Vancouver-based Pan American Silver Corp. (PAAS) operates silver mines in Canada, Mexico, Peru, Argentina, and Bolivia. In its latest quarter, the silver mining giant posted earnings of 57 cents per share on revenues of $430.46 million. Both metrics came in ahead of Wall Street forecasts and grew 73% and 6.4% YoY, respectively. As of Feb. 18, 2021, Pan American Silver Corp. stock has a market capitalization of $6.73 billion, and trades nearly 8% lower on the year. Investors also receive a 0.86% dividend yield.
Chart-wise, the stock price trades within a seven-month range. Pullbacks to the pattern’s lower trendline provide high probability entry points.
Fortuna Silver Mines Inc.
With a market value exceeding $1.4 billion, Fortuna Silver Mines Inc. (FSM) is a Canadian-based precious metals producer with significant silver mining assets in Peru and Mexico. The company, which does not currently issue a dividend, grew its bottom line 350% in the third-quarter (Q3) from a year earlier, posting earnings per share (EPS) of 9 cents during the period. Through Wednesday’s close, Fortuna Silver Mines stock trades 7.77% lower year to date (YTD). However, it has gained over 100% in the past 12 months.
From a technical perspective, the price has formed a multi-month broadening wedge. Traders should look for retracement entries to the pattern’s lower trendline that finds a confluence of support from the 200-day SMA.
Endeavour Silver Corp.
Endeavour Silver Corp. (EXK) conducts silver mining operations through three high-grade, underground, silver-gold mines in Mexico. Analysts expect the Canadian-based silver miner to disclose a profit of 6 cents per share in the current quarter and 19 cents a share for full-year 2021. Moreover, brokerage coverage remains mostly favorable, with the shares receiving 4 ‘Buy’ ratings and 6 ‘Hold’ ratings. Endeavor Silver Corp. stock has a market cap of $921.21 million and trades 16% higher YTD.
From a charting standpoint, traders should watch for “buy the dip” opportunities near a long-term uptrend line that extends back to the March 2020 pandemic-induced low.
For a look at today’s earnings schedule, check out our earnings calendar.