Don’t Miss Out on This Silver Miner: First Majestic Silver Corp (AG), Silver Wheaton Corp. (USA) (SLW)

Silver Industry’s Major Players

Based in Vancouver, Canada, Silver Wheaton Corp. (USA) (NYSE:SLW), not only produces silver but also sells silver mined by other companies. It is trading at a forward P/E (1yr) of 15.28x, making it a rather expensive buy in the silver industry. A PEG of 0.28 shows that it’s a hugely undervalued stock. A mean target price of $48 on the sell side depicts that it has an upside potential of almost 52%. Plus, a mean recommendation of 1.7 on the sell side testifies the fact that it’s a must buy in the silver industry.

On the other hand, Endeavour Silver Corp. (CAN) (NYSE:EXK) is trading at a forward P/E (1yr) of 10.62x and has a mean recommendation of 2 on the sell side. Using earnings multiple, I value Endeavour Silver at $9, showing an upside potential of around 48%. This makes Endeavour Silver one of the best buys in the silver industry along with First Majestic and Silver Wheaton. You can have a further look at my detailed take on Endeavour Silver Corporation here.

Conclusion

Going forward, the biggest catalyst for First Majestic Silver Corp (NYSE:AG) would be its Del Toro mine. By the end of second quarter, the company would be producing significant amount of silver bars from the mine. During the final phase of production at Del Toro, it is expected to become company’s largest operation and is estimated to produce over 6 million ounces of silver per year. Apart from this, further development at La Encantada, San Martin, and La Parrilla would make sure that the company produces more than 12 million ounces of silver this year. Further, more demand for industrial silver in 2014 means higher silver prices next year. The bottom line is that First Majestic Silver Corp (NYSE:AG) is still among the top silver stocks in the industry. Hence, I definitely recommend buying it.

The article Don’t Miss Out on This Silver Miner originally appeared on Fool.com and is written by Waqar Saif.

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