Fortuna Silver Mines is one of the world’s most traded precious metals. It’s also an essential component of electronics and a range of industrial goods. Unknown to some investors is the fact that silver is also a critical aspect of the alternative energy market. Silver is used extensively for solar cell production, due to its electrical and thermal conductivity properties. Solar panel manufacturers rely on silver to create efficient photovoltaic cells, which means that the demand for silver is likely to increase as the alternative energy market expands.
Alternative investors looking for complementary stocks can consider Fortuna Silver Mines Inc. (NYSE: FSM) in November. This stock has suffered throughout the year, putting it well down from its 52-week peak of $4.59. Analysts now believe that a turnaround could be on the horizon, thanks to consensus earnings estimates increasing 12.4% over the last two months.
Fortuna has generated revenue growth for five consecutive years. It’s not just strong on the top line. The company generates a gross profit margin of 37.99%. EBITDA, a stronger measure of real profitability is also positive. At the end of 2018, the company reported a 44.56% EBITDA margin.
Silver is not only a great pick for the alternative energy market. It’s also a strong mining pick for the market overall. Silver’s extensive use in electronics and battery cells means that demand will continue to grow in the coming years.
Fortuna has vastly underperformed this year, but the company’s fiscal stability and potential to beat earnings estimates in 2019 make it a bargain stock to watch.
- 1 Year Price Growth: -17.82%
- YTD Price Growth: -15.11%
- 3 Month Price Growth: -21.77%
All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.