Monday, April 22, 2019

Top 3 Silver Stocks as of October 2017

by Kevin Johnston


Many silver stocks look beaten up in 2017. They are either near a bottom or struggling to overcome a resistance price. Most of these stocks are trading at prices below their 50-day moving averages, and this is usually a bearish sign. We found three silver stocks that are currently at or near support levels. These stocks could rebound off support, but the wise investor will put them on a watch list to see how they perform before buying.

Silver companies are dependent to some extent on the yield on bank CDs or Treasury bonds. As long as those instruments pay low interest rates, metals in general – and silver in particular – will remain attractive. Several analysts expect higher prices for silver in 2017. Let’s look at three top silver stocks and their prospects for the rest of 2017. All figures are current as of Oct. 19, 2017. (To learn more, check out: A Silver Primer.)

Northern Dynasty Minerals Ltd. (NAK)

This developer of mineral properties is based in Vancouver, Canada. Northern Dynasty shares entered an upward trend in October 2016 but saw a sharp drop in February 2017. The stock has struggled to post significant gains since then, and it has now settled into a base. It will need to break upward out of this base to prevent further losses. (For more, see: The World’s Top 5 Silver Mining Companies.)

  • Average Volume: 2,908,926
  • Market Cap: $608.72 million
  • P/E Ratio (TTM): -15.07
  • EPS (TTM): -$0.13
  • Dividend and Yield: N/A (N/A)

Great Panther Silver Limited (GPL)

Great Panther mines properties in Mexico. Although it is a silver miner, it also mines gold, lead and zinc. The original company that became Great Panther Silver began in 1965. This company offers stability simply for its longevity. As of this writing, the stock is trading at $1.26 per share, just above support. The stock has consistently found support at around this level. (See also: The Best Way to Buy Silver.)

  • Average Volume: 678,093
  • Market Cap: $208.82 million
  • P/E Ratio (TTM): 70.14
  • EPS (TTM): $0.02
  • Dividend and Yield: N/A (N/A)

Pan American Silver Corp. (PAAS)

Pan American Silver focuses its effort on mines in Peru, Mexico, Argentina and Bolivia. This is not a pure silver play, because the company also mines gold, zinc, lead and copper. The company dates back to 1979. The chart on Pan American Silver stock shows that it has been in a base since its gains in March 2017. If it breaks below support at $15.50, the stock could have more downside coming. However, it is currently trading at nearly $17 per share. (For more, see: Pan American, Brixton Metals Ink Asset Purchase and Sale Deal.)

  • Average Volume: 1,289,924
  • Market Cap: $2.55 billion
  • P/E Ratio (TTM): 21.70
  • EPS (TTM): $0.78
  • Dividend and Yield: $0.10 (0.58%)

The Bottom Line

Silver itself may rise in price in the last quarter of 2017, but this does not mean that all silver miners are well managed or that investors are buying them. The three silver stocks on this list show some promise, but they are currently suffering. It is important to note that two of these stocks – Northern Dynasty and Great Panther – trade below $5 per share. A stock with a price this low can have greater volatility than a higher-priced stock like Pan American.

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