(VIANEWS) – The NYSE ended the session with First Majestic Silver rising 5.31% to $7.64 on Friday, following the last session’s downward trend. NYSE fell 1% to $13,472.18, following the last session’s downward trend on what was a somewhat bearish trend exchanging session today.

First Majestic Silver’s last close was $7.25, 50.58% below its 52-week high of $14.67.

Is First Majestic Silver stock a good investment?

To answer the question “Is First Majestic Silver stock a buy or sell?” investors should first examine the company’s profitability and solvency, as well as its risk and return profiles. By evaluating these factors, they can determine the company’s growth potential and minimize the volatility of their portfolios.

First Majestic’s bottom line is driven by the price of silver and gold. Their revenue growth this quarter was 61 percent, which is a new high. This increased their bottom line and increased their shareholders’ views of precious metals producers. As a result, their stock price has been climbing.

First Majestic’s stock is trading at a steep premium to its industry peers. For example, it trades at 31 times its projected FY2023 earnings. This is a high multiple compared to its peers, including Agnico Eagle and Newmont, which trade at 1.1x P/NAV. However, the company’s margin profile is far more favorable.

Investors should also examine the volatility of First stock. There are two types of risks: systematic and nonmarket risk. The former can be minimized by diversifying among a variety of stocks, while the latter cannot be eliminated by diversification. In addition, investors should limit their exposure to precious metals stocks to 5% of their portfolio.

About First Majestic Silver

First Majestic Silver Corp. is engaged in exploration, development and production of mineral properties. Its primary focus is on North American silver and gold production. The company holds 100% interest in San Dimas Silver/Gold Mine, which covers an area covering 71,868 ha in Durango, Sinaloa, and Santa Elena Silver/Gold Mines. Jerritt Canyon, Nevada, has a gold mine covering approximately 30,821 ha. La Encantada Silver Mine, covering 4,076 ha in Coahuila. It also owns 1,343 acres of surface land. It also owns 100% of the La Parrilla Silver Mine, which covers an area covering 69,478 ha in Durango, the Del Toro Silver Mine, consisting of 3,815 Ha of mining concessions, and 219 Ha of surface rights in Zacatecas, the San Martin Silver Mine, with 33 mining concessions, and 39,714 ha, located in Jalisco, and the La Guitarra Silver Mine, that covers an additional 39,714 ha. It also holds an interest in the Springpole gold-silver project that covers approximately 41,913 ha in Ontario, Canada. The original name of the company was First Majestic Resource Corp., but it changed its name in November 2006 to First Majestic Silver Corp. First Majestic Silver Corp. is an American corporation that was founded in 1979. Its headquarters are located in Vancouver, Canada.

Earnings Per Share

As for profitability, First Majestic Silver has a trailing twelve months EPS of $0.11.

PE Ratio

First Majestic Silver has a trailing twelve months price to earnings ratio of 70.69. Meaning,
the purchaser of the share is investing $70.69 for every dollar of annual earnings.

The company’s return on equity, which measures the profitability of a business relative to shareholder’s equity, for the twelve trailing months is 0.04%.

Moving Average

First Majestic Silver’s worth is above its 50-day moving average of $7.58 and way below its 200-day moving average of $9.80.

More news about First Majestic Silver (AG).

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