Best Money Stocks for Q4 2022

Silver has value as an industrial metal and as a precious metal. It is used in jewelry, 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 metals and minerals other than silver, such as zinc, lead, copper and gold. Silver is often a by-product produced from the mining of 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 futures rose after the Russian invasion of Ukraine, but have been falling ever since.

Silver stocks, represented by the Global X Silver Miners ETF (SIL), have underperformed the broader market over the past year. SIL has delivered a total return of -30.9% over the past 12 months, well below the Russell 1000 total return benchmark of -17.0%. These market performance numbers represent all statistics in the tables below as of September 29, 2022.

Here are the top three silver stocks with the best value, fastest growth, and best performance.

These are the silver stocks with the lowest 12-month 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 indicates that you are paying less for each dollar of profit generated.

Best Value Cash Stocks
Price ($) Market Cap ($B) Trailing 12-Month P/E Ratio
Silvercorp Metals Inc. (SVM) 2.25 0.4 14.1
Fortuna Silver Mines Inc. (FSM) 2. 39 0.7 17.3
MAG Silver Corp. (MAG) 12.02 1.2 68.3

Source: YCharts

  • Silvercorp Metals Inc.: Silvercorp Metals is a Canadian-based mining company that acquires, explores and develops mineral properties in China. The company produces silver, lead, and zinc metals. Silvercorp Metals trades in Canada under the ticker SVM.TO. On August 24, Silvercorp announced the launch of a share repurchase program expiring August 28, 2023. Through this program, the company is authorized to buy back up to 7.1 million common shares.
  • Fortuna Silver Mines Inc.: Fortuna Silver Mines is a Canadian-based mining company focused on silver mining in Latin America and West Africa. The company operates silver, lead, zinc and gold mines. Fortuna Silver Mines trades in Canada under the ticker FVI.TO. On August 10, the company released its financial results for Q2 2022. Net income declined even as sales rose more than 39% year-over-year (YOY). The decline in profit was caused by a number of factors, including falling silver prices and lower production.
  • MAG Silver Corp.: MAG Silver is a mineral exploration and development company based in Canada. It is focused on acquiring, exploring and developing silver projects in Mexico. MAG Silver trades in Canada under the ticker MAG.TO.

These are the top money stocks as ranked by a growth model that scores companies based on a 50/50 weighting of their most recent quarterly YOY revenue growth and quarterly earnings per share (EPS) growth. Both sales and earnings are critical factors in a company’s success. Therefore if ranking companies according to a growth metric only, ranking can be subject to accounting anomalies of that quarter (such as changes in tax law or restructuring costs) which could make one figure or another unrepresentative of the business in general . Companies with quarterly EPS or revenue growth in excess of 2,500% were excluded as outliers.

Fastest Growing Silver Stocks
Price ($) Market Cap ($B) EPS Growth (%) Revenue Growth (%)
Fortuna Silver Mines Inc. (FSM) 2. 39 0.7 -87.5 39.3
Silvercorp Metals Inc. (SVM) 2.25 0.4 -14.3 8.1
First Majestic Silver Corp. (AG) 7.25 1.9 N/A (see company description) 3.4

Source: YCharts

  • Fortuna Silver Mines Inc.: See above for a description of the company.
  • Silvercorp Metals Inc.: See above for a description of the company.
  • First Majestic Silver Corp.: First Majestic Silver is a Canadian-based silver and gold producer engaged in the exploration and development of mineral properties in the US and Mexico. The first Majestic trades in Canada under the ticker FR.TO. The company’s most recent quarterly dividend of $0.0061 for Q2 2022 was paid on August 31, 2022. Note that First Majestic had negative EPS for the most recent quarter, making the EPS growth figure in the table above impossible to calculate.

These are the silver stocks with the best returns or the smallest declines in total return over the last 12 months of the companies we looked at.

Silver Stocks with the Best Performance
Price ($) Market Cap ($B) Total Outcome 12 Month Follow-up (%)
Aya Gold & Silver Inc. (AYA.TO) $7.82 CA $0.8 7.1
MAG Silver Corp. (MAG) 12.02 1.2 -22.9
Pan American Money Corp (PAAS.TO) $21.41 CA$4.5 -25.4
Russell 1000 N/A N/A -17.0
Global X Silver Miners ETF (SIL) N/A N/A -30.9

Source: YCharts

  • Aya Gold & Silver Inc.: Aya Gold & Silver is a Canadian-based mining company focusing on properties in Morocco. It explores, develops, produces and acquires precious metal mining projects. Aya also trades over the counter (OTC) in the US under the ticker AYA. The company announced on September 12 that it had entered into an agreement with Morocco’s National Office of Hydrocarbons and Mines to purchase the remaining 15% stake in the Zgounder mining project as well as five adjacent licenses. The deal is valued at around $6.5 million.
  • MAG Silver Corp.: See above for a description of the company.
  • Pan American Silver Corp: Pan American Silver is a Canadian-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. Pan American Silver trades over the counter in the US under the ticker PAAS. On September 14, Pan American Silver reported a significant increase in its mineral resource estimate for its 100% La Colorada Skarn deposit in Mexico. The updated estimate is 95.9 metric tons of resources, almost all silver.

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