Finding the best undervalued stocks to buy now requires deep research. Likewise, industry analysis is needed for building a long-term portfolio. First of all, investors have to look for industries that have the biggest potential growth in the coming years. The exploration and development of precious metals properties can be such an industry. Moreover, uncertainty and the possible beginning of depreciation in the global stock market add more positive to gold and silver miners. And, SilverCrest Metals is one of the strongest companies in this sector.
Basic company information
The company acquires, explores, and develops precious metal properties in Mexico. So, it primarily explores silver and gold properties. The company’s principal property is the Las Chispas project. It consists of 28 concessions totaling 1400.96 hectares located in Sonora, Mexico.
Incorporation date – 2015
Headquarter – Vancouver, Canada.
Market Cap: CA$1.834b
Shares outstanding: 129.23m
The symbol in US stock exchange – SILV
Fundamental Analysis
First of all, the company’s short-term assets marginally exceed its short-term liabilities. Similarly, its long-term assets exceed long-term liabilities.
SILV had and has no debts. Moreover, its equity keeps rising each year. With that in mind, we expect to see earnings and revenue growth in the coming few years.
However, the company did not report any dividends payouts. So, SILV stocks are likely not suitable for investors focused on collecting dividends.
Technical analysis
Certainly, the cycle forecast shows building long-term bottom later this year. Besides, we have a clear flag pattern on the weekly chart. The price broke above the trendline last week. However, it is still too early to say if this breakout was real or false. We need to see more price action to confirm the signal. Also, consolidation around breakout level can build momentum to rally to new highs. After the new uptrend starts stocks can double or even triple in the coming 3 – 5 years.
In conclusion
To sum up, SILV has fundamental and technical setups for a rally. It can give a good trading opportunity for skilled traders and investors in the coming few years. Additionally, the slowdown of economic recovery after the coronavirus pandemic can trigger a long term rally of the whole sector.
Best Undervalued Stocks to Buy Now by Inna Rosputnia
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