Silver may not be the first thing that comes to mind when looking for alternative investments. However, this precious metal plays a key role in the production of clean and renewable energy.
First Majestic Silver Corp. (NYSE: AG) is a mining company that engages primarily in the discovery and extraction of silver and gold. Stock is performing well this year, thanks to increased confidence in the mining sector, as well as a belief that stock was previously undervalued.
First Majestic Silver made $390.05 million in revenue during 2018, a year over year increase of 19.11%. Cost of goods sold has increased for the company, which led to an operational loss in the last fiscal year. The company will now need to focus on increasing its profitability while maintaining its recent sales momentum.
Majestic Silver is a key component in photovoltaic cells. Without an abundance of processed silver paste, solar energy production would not be possible on the same scale that it is today. Companies like First Majestic Silver help to indirectly support the renewable energy industry, making this a strong pick for any alternative investment portfolio.
Analysts believe that this stock is overperforming, and there’s a consensus target price of $7.42 per share. The moderate upside will be appealing to investors who are interested in the bargain stock market. Three top analysts recorded by FactSet recommend an outright buy on this stock, believing the company has the longevity and core business model to turn its profits around and continue to grow.
- 1 Year Price Growth: -10.03%
- YTD Price Growth: 21%
- 3 Month Price Growth: 80%
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.