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In accordance with my previous prediction, silver prices have generally been making higher highs and higher lows since mid-February. As a result, the metal’s price has jumped from $22.39 per ounce on Feb. 14 to $30.56 per ounce on May 31. And on May 28, UBS raised its forecasts for silver prices by $4 per ounce. As a result, the Swiss bank now expects the metal’s prices to increase to $38 per ounce by the end of September and $36 per ounce by the end of 2024. And UBS expects the metal’s price to surge to $28 at the end of June 2025.
According to the bank, the Silver Institute expects “total industrial demand” for the metal to climb by 9% this year to 711 million ounces, as the demand for silver for use in solar energy systems will soar by 20% to 232 million ounces. Also importantly, the supply of silver is expected to drop by 0.8% in 2024. Here are three top silver stocks to buy to exploit the metal’s highly favorable outlook.
Pan American Silver (PAAS)
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Pan American Silver (NYSE:PAAS) estimates it can mine nearly 487 million ounces of silver over the longer term, making it one of the world’s largest silver miners. Last quarter, the firm produced over 5 million ounces of silver, after producing 20.4 million ounces in 2023.
In Q1, the company’s top line jumped 54% versus the same period a year earlier to $601 million, while net cash generated from operating activities before changes in working capital soared to $133.2 million from $43.3 million.
Finally, analysts on average expect the company’s earnings per share to advance to 52 cents this year and $1.08 next year versus just 12 cents in 2023.
Moreover, PAAS stock clearly has a huge amount of momentum as it jumped 70% in the three months that ended on May 31.
The rapid expected growth of Pan American’s bottom line makes it one of the best silver stocks to buy.
Endeavour Silver (EXK)
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In 2023, Endeavour Silver (NYSE:EXK) produced 5.67 million ounces of silver. As a result, the firm appears to be very well-positioned to benefit from the continued appreciation of silver prices going forward.
Indeed, analysts on average expect its earnings per share to climb to 16 cents this year and 38 cents in 2025 compared to just 3 cents in 2023.
And the stock has tremendous momentum as it soared 137% over the three months that ended on May 31. Despite the huge gain, the shares are trading at a very low forward price-to-earnings ratio of just 10.4 times analysts’ average 2025 EPS estimate.
Finally, Investor’s Business Daily gives EKX stock an Accumulation/Distribution rating of A+, indicating that many large investors have been buying the stock over the last 13 weeks. What’s more, the publication gives the shares a high Composite Rating of 92 out of a possible 99.
Fortuna Silver Mines (FSM)
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Fortuna Silver Mines (NYSE:FSM) produced 5.88 million ounces of silver in 2023, indicating that it is very well-positioned to benefit from the likely, ongoing increases of silver prices in 2024.
In Q1, Fortuna’s sales jumped 29% versus the same period a year earlier to $224.9 million, while its operating income surged 97% year-over-year to $47.1 million.
Also positively for the owners of FSM stock, the company will repurchase up to 5% of its outstanding shares. And Fortuna expects its production of both gold and silver to rise throughout 2024, so its quarterly financial results should improve for the rest of 2024.
And indicating that the shares have a great deal of momentum, they have soared 114% over the last three months.
Investor’s Business Daily gives FSM stock a perfect Composite Rating of 99 and a perfect Accumulation/Distribution rating of A+. The latter metric indicates that institutions have been buying a great deal of the stock in the last 13 weeks.
On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines
Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been SMCI, INTC, and MGM. You can reach him on Stocktwits at @larryramer.
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