This Low-Profile Silver Stock Could Be a Golden Opportunity All that glitters isn’t gold — in fact, right now, silver stocks are on a serious upswing. Here’s why the trend is likely to continue — and one of our...
This story originally appeared on WallStreetZen
Precious metals are currently on quite the bull run, having benefited from renewed interest amid economic uncertainty.
This time around, things are a tad different, however. Gold and silver have long been renowned as hedges against inflation and stores of value — now, they are reaping the gains of being lucrative speculative investments as well.
Since the start of 2025, gold has provided a 26.71% return — and its grey-hued cousin has secured a lesser, yet still impressive return of 10.76% — particularly in view of the S&P 500’s 3.56% loss in the same timeframe.
Our Editor-in-Chief, Steve Reitmeister, gave an elegant explanation as to why investing in equities — mining stocks, to be precise, is often not only simpler, but more lucrative than investing in the metals directly.
To summarize in the briefest possible way — mining costs stay the same, precious metal prices rise, and shareholders benefit. If the timing is right, you’ll also have caught the stocks before other investors start piling in.
Since our Editor-in-Chief already provided a gold mining stock, today we’ll be taking a look at a silver mining stock — Pan American Silver (NYSE: PAAS).
Compared to this time last year, PAAS shares are up 42.09%.
However, we’re not here to discuss past glories — Pan American Silver stock currently ranks in the top 1% of the equities our proprietary quant rating system tracks.
This fact affords it a Zen Rating of A — and stocks with this distinction have historically provided an average annual return of 32.52%.
For a better idea as to why it has earned such a high rating, we have to turn to PAAS’s Component Grade ratings — and reflect on some recent developments surrounding the mining company.
We’ll approach the Component Grades in order.
Don’t let the C in Value fool you — at a price-to-earnings (PE) ratio of 29.37x, compared to the industry average of 30.8x, and a price-to-earnings growth (PEG) ratio of 0.88x, the stock is quite fairly valued at worst.
In terms of Growth, it ranks in the top 7% of stocks. Earnings are forecast to grow at a rate of 33.42% per year — outpacing the consensus estimates of 13.1% for the industry and 15.83% for the wider market.
The same can be said about revenues, which are expected to grow at a rate of 13.54% per year, in comparison to the industry’s 8.49% and the market’s 9.66%.
As for Momentum — in the interest of brevity, let’s leave it at +27.33% year-to-date (YTD) and +42.09% compared to this time last year.
Next up is Sentiment, where PAAS ranks in the top 4% of equities. There have been no insider sales in the past year, and the average 12-month price forecast from Wall Street currently implies a 33.07% upside — half a percentage point above the performance expected of a stock with a Zen Rating of A.
This metric also takes into account short interest, which currently stands at just 2.12% of the stock’s float, per data from third-party sources.
I don’t want to bore you (at least not too much) with dry metrics — Pan American Silver stock ranks in the top 20% in Safety, the top 18% in terms of Financials, and the 93rd percentile in terms of its Artificial Intelligence ratings.
Now, let’s take a look at those recent developments. On May 7, the company published its Q1 2025 earnings report. Earnings per share (EPS) came in at $0.42, above consensus estimates, which were pegged at $0.16. Revenues of $773.2 million also outperformed expectations of $668.96 million.
One final factor makes PAAS a particularly interesting opportunity — and it’s all in the name. While the company does engage in the mining of both commodities, equating the scale would be a mistake. In Q1, the venture produced 182.2 thousand ounces of gold — and 5 million ounces of silver.
The gold to silver ratio, which measures how many ounces of silver would have to be sold to purchase one ounce of gold, is highly elevated, currently sitting at around 100, in contrast with a historical average in the mid-60s. Such high levels have historically coincided with several of silver’s greatest bull runs — the ones during which it outperformed gold.
Is there a guarantee that silver will outperform gold going forward? No — but discounting reversion to the mean is generally unwise, and Pan American Silver is currently so well-rounded that it certainly deserves your attention.
—> Click here to research PAAS
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