Endeavour Silver Corp. (CAN) (EXK): A Must-Buy Silver Stock

On the other hand, Silver Standard Resources Inc. (USA) (NASDAQ:SSRI) is trading at a forward P/E (1-yr) of 36.79, illustrating the fact that it’s almost three times more expensive than the average silver stock. It has a mean recommendation of 2.1 on the sell side and has a PEG of 0.83. This shows that Silver Standard Resources is an undervalued stock with upside potential. Silver Standard Resources is one of the better buys in the silver industry, but not the best.

Conclusion

In 2013, the biggest catalyst for Endeavour would be its new El Cubo mine. Once the company starts to extract substantial volumes of silver from the El Cubo mine, its production costs will be lowered due to high operational efficiency. With the El Cubo mine operating at its full capacity, the extraction of lower grades would be reduced at Guanacevi. This would further decrease the company’s production costs. Furthermore, Bolanitos is still not operating at its full capacity; however, its production can be raised when needed. Going forward in 2014 and 2015, Endeavour has further plans of growing productions at all three mines.

As the demand for industrial silver is expected to grow in 2014, silver stocks are bound to fly high as well. Moreover, with steel prices still hovering around $29, it’s the best time to buy silver stocks. Having a great production outlook for 2013, Endeavour Silver Corporation is certainly one of the best buys in the silver industry. We recommend buying Endeavour Silver Corporation.

The article A Must-Buy Silver Stock originally appeared on Fool.com.

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