Stock of the Day

June 25, 2025

Pan American Silver (PAAS)

$44.18
+$0.41 (+0.9%)
Market Cap: $18.11B

About Pan American Silver

Pan American Silver Corp. engages in the exploration, mine development, extraction, processing, refining, and reclamation of silver, gold, zinc, lead, and copper mines in Canada, Mexico, Peru, Bolivia, Argentina, Chile, and Brazil. The company was formerly known as Pan American Minerals Corp. and changed its name to Pan American Silver Corp. in April 1995. Pan American Silver Corp. was incorporated in 1979 and is headquartered in Vancouver, Canada.

Today's Trend

Pan American Silver Corp. (NYSE: PAAS; TSE: PAAS) is under pressure as investors weigh mixed analyst earnings revisions. The stock has decreased, with the main negative signal coming from Scotiabank’s reductions to several longer-term forecasts, although the firm continues to rate PAAS “Outperform.”

  • National Bank Financial raised its FY2027 EPS forecast to $4.31 from $4.15 and increased its FY2028 estimate to $6.65 from $6.45. It also lifted several quarterly forecasts, including Q1 2027 to $1.06 and Q2-Q4 2027 to $1.08 each, suggesting stronger expected earnings momentum. Pan American Silver analyst estimates
  • Scotiabank increased its Q3 2026 EPS estimate to $0.71 from $0.67 and its Q4 2026 forecast to $0.78 from $0.74. The bank maintained its “Outperform” rating, indicating it remains constructive despite other estimate changes. Pan American Silver analyst estimates
  • Analyst views are divided: National Bank Financial lowered its Q3 2026 estimate to $0.82 from $0.87, while Scotiabank raised its full-year 2026 forecast to $3.27 from $3.21. The differing outlooks may contribute to near-term volatility.
  • Scotiabank cut its Q1 2027 and Q2 2028 EPS estimates to $0.67 and $0.58, respectively, and reduced FY2028, FY2029 and FY2030 forecasts to $2.29, $2.06 and $1.70. Those figures were lowered from $2.73, $2.68 and $2.18 for the respective annual periods, signaling weaker expected long-term profitability and likely weighing on the shares.

Overall, near-term estimates from National Bank Financial are supportive, but Scotiabank’s substantially lower 2028-2030 projections are the more important negative development for valuation-focused investors.

More Than a Monetary Metal: Silver's Case for Outperformance

Written By Jeffrey Neal Johnson on 6/22/2025

Photo of blocks of silver

While the gold sector often commands the spotlight in a strong precious metals market, a compelling case is being made for its industrial counterpart, silver. As the lustrous yellow metal trades near its highs, many investors are asking a critical question: Could the silver sector, with its unique and dynamic fundamentals, offer more explosive upside potential in the current environment?

A potent mix of factors, from surging demand for green technology to shifting central bank policy, is creating a uniquely bullish case for the white metal, suggesting its recent run may have more room to grow.

Why All Signs Are Pointing to Silver

The current bullish argument for silver rests on several powerful and interconnected pillars. Unlike gold, where investment and jewelry demand dominate, silver has a dual identity that makes it essential to the modern economy.

First is its role as an industrial workhorse. Over half of all annual silver consumption is attributed to industrial applications, directly tying its value to global economic output and technological innovation. It is a critical and often non-substitutable component in high-growth sectors, including the photovoltaic cells (PV) that power solar panels and the complex electronics within electric vehicles (EVs). This direct link to the global energy transition provides a powerful and long-term demand driver.

Second, the market is grappling with a fundamental imbalance. The silver market is projected to be in its fifth consecutive year of a structural supply deficit. This situation occurs when global demand consistently outstrips new supply from mining and recycling. This persistent shortfall creates strong underlying price support and can lead to amplified price gains when investment demand also accelerates.

Favorable macroeconomic trends are providing another boost. At its June 18 meeting, the U.S. Federal Reserve held steady interest rates but signaled two potential rate cuts for later in 2025. Lower interest rates are typically good for silver.

They reduce the opportunity cost, or the potential income an investor gives up by not holding an interest-bearing asset. This policy pivot is complemented by a general downtrend in the U.S. dollar for much of 2025, which makes dollar-denominated silver cheaper for foreign buyers and adds another layer of demand.

Finally, there is the relative value argument. The Gold/Silver ratio, which measures how many ounces of silver it takes to buy one ounce of gold, remains above historical averages. To some analysts, this suggests silver may still be undervalued relative to its more famous counterpart, giving it more room to run in a precious metals bull market.

How to Position for Silver's Potential

Understanding the bullish case for silver is the first step; the next is determining how to translate that thesis into an investment strategy. The choice often comes down to gaining direct exposure to the metal's price movements or seeking leveraged returns through the companies that pull it from the ground.

Due to operational leverage, mining stocks can offer significant gains during a silver bull market, but they also carry company-specific risks that are not present in a direct bullion investment.

 Here are three top picks to consider, each offering a unique approach to capturing the white metal’s momentum.

1. iShares Silver Trust: The Direct Price Play 

The iShares Silver Trust (NYSEARCA: SLV) offers investors direct exposure to silver bullion's price movements. Reflecting the metal's underlying strength, the ETF recently traded to a new 52-week high.

Its powerful year-to-date net asset value (NAV) total return of approximately 33% as of June 18 underscores the strong trend benefiting the metal.

This makes it a common choice for investors who want to bet on the price of silver itself, without taking on the operational and geological risks of a mining company. 

2. First Majestic Silver: The Silver-Focused Producer

First Majestic Silver (NYSE: AG) is a mining company with significant revenue leverage to the silver price. Its stock hit a ne,w 52-week high on June 18, a move supported by volume that was approximately 75% higher than average.

The company has also experienced multiple major catalysts, including a significant new gold-silver discovery at its Santa Elena property, announced on May 28, as well as strong financial results for the first quarter of 2025.

As one of the market's most price-sensitive primary silver producers, its stock price is susceptible to fluctuations in silver, offering investors a more direct pure-play equity exposure.

3. Pan American Silver: Growth Through Acquisition

Pan American Silver (NYSE: PAAS) is a large and diversified producer, and the company is making a strategic move to enhance its silver portfolio.

The company has a pending deal to acquire MAG Silver (NYSEAMERICAN: MAG), which includes a 44% interest in the high-grade, low-cost Juanicipio mine. This acquisition is poised to enhance Pan American's margins and future earnings, providing a clear catalyst for its stock price.

The addition of Juanicipio is considered a move to add a long-life, low-cost tier one asset, a class of mines prized for their ability to generate significant free cash flow. Investors are watching the upcoming shareholder vote on the deal, scheduled for July 10.

Why Silver's Story Stands Out

While gold will always be a cornerstone of the precious metals market, silver's story is arguably more dynamic today. The combined forces of relentless industrial demand, a structural supply deficit, and a supportive macroeconomic environment create a powerful and timely investment case. These factors suggest that silver may offer more compelling return potential to investors seeking growth in the current market.

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