First Majestic Silver Corp.

First Majestic Silver Corp. (AG - Snapshot Report) has traded strong in the volatile market of the last two months, following precious metals higher as investors search for safety. With estimates taking a big jump in the last month, this Zacks #1 Rank stock is a shining picture of momentum.

Company Description

First Majestic Silver Corp. is a silver exploration and production company with its operations concentrated in Mexico. The company was founded in 1979 and has a market cap of $2.12 billion.

Precious metals remain a favorite destination for investors looking for protection against inflation and global instability. That and record Q2 results from mid August has supported shares of AG in the weak market of the last two months.

Second-Quarter Results

Revenue for the period was up 148% from last year to $68 million. Earnings came in at 30 cents per share, an impressive 150% increase from the same period last year, but three cents short of the Zacks Consensus Estimate calling for 33 cents.

The good quarter was driven by increased production, climbing 16% from last year, and higher realized prices, with the average selling price of silver more than doubling to $38.42.

Financial Profile

First Majestic has used its recent earnings momentum to strengthen its financial profile, with cash and short-term investments up $19 million from last quarter to $105 million against total debt of just $12 million.

Estimates

We've seen some pretty decent movement in estimates over the last month, with the current year up 24 cents to $1.36. The next-year estimate is up 37 cents in the same time to $2.24, a bullish 65% growth projection.

Valuation

But in spite of recent gains, the valuation picture still looks solid, with a forward PEG ratio of .23 well below the bench mark of 1 for value.

12-Month Chart

On the chart, AG has held up well in the recently volatile market, Look for support from the trend line on any weakness, take a look below.

Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Momentum Trader Service.