As market volatility continues to be a regular market staple, the commodity plays are attracting more and more investors. The precious metals have long been thought of as safe havens, but whether the miners of that metal can deliver on that idea is a different story. If you’re looking to add some beta to your portfolio, you may want to read about these five silver companies. These five were chosen because of their opportunities for profit margin expansion and earnings ratio multiple expansion through growth. Use this analysis as a starting point for your own research.
First Majestic Silver Corporation (AG) – At its current price of around $17, First Majestic is trading right in between its yearly low set back in January and its yearly high which was set in April. Although the price of silver has been pushed down in recent weeks, First Majestic has been able to hold its own in the high teens. Compared to competitors Silvercorp Metals (SVM) and especially Silver Standard Resources (SSRI), First Majestic’s P/E of 19.46 leaves something to be desired. The company is a key player in the Mexican silver mining market and stands to reap substantial benefit from emerging market demand for precious metals. The 42% profit margin is impressive for the silver space right now, but the rising value of the U.S. dollar is definitely something to keep an eye on. If the dollar continues to gain strength in the coming weeks it could damage the profitability of a First Majestic in the short term.To continue reading, click here.