First Majestic is Trading Near 52-Week High: Should You Buy the Stock?

Shares of First Majestic Silver Corp. AG have been showing impressive gains of late, trading close to its 52-week high of $27.90. The stock closed at $27.55 on Friday, 1.3% below the highest point. Shares of the precious metals mining company have surged 128.4% in the past three months, outpacing the Zacks sub-industry’s and the S&P 500’s growth of 74.7% and 2.8%, respectively.

The company has also outperformed other industry players like Avino Silver & Gold Mines ASM and Pan American Silver Corp. PAAS, which have gained 96.5% and 65.9%, respectively, over the said time frame.

AG Outperforms Industry, S&P 500 & Peers

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The stock is trading above both its 50-day and 200-day moving averages, indicating solid upward momentum and price stability. This reflects a positive market sentiment and confidence in the company's financial health and long-term prospects.

AG Shares Trading Above 50-Day and 200-Day SMA

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Factors Favoring the Company

AG’s total production reached 7.8 million silver-equivalent (AgEq) ounces in the fourth quarter of 2025. The figure comprises a record 4.2 million silver ounces and 41,417 gold ounces. It also includes 14.2 million pounds of zinc, 8.1 million pounds of lead and 235,886 pounds of copper. The AgEq ounces produced reflected strong 37% year-over-year growth, supported by a 77% surge in silver production.

For 2025, First Majestic met its upwardly revised production outlook (provided in July 2025), with full-year production of 31.1 million AgEq ounces. The figure includes a robust 15.4 million silver ounces, 147,433 gold ounces, 56.7 million lbs of zinc and 32.3 million lbs of lead.

Silver prices have soared over the past year due to strong safe-haven demand, geopolitical tensions and escalating trade conflicts. Silver has benefited from resilient industrial demand and mounting supply deficits. Demand for electronics, electrification and solar energy now accounts for more than half of global silver demand.

Also, the company gained a 70% interest in the high-quality and long-life Cerro Los Gatos Silver underground mine with the acquisition of Gatos Silver in January 2025. This transaction strengthened AG’s position as an intermediate primary silver producer.

Also, the company’s strong liquidity position is an added strength. First Majestic achieved a record quarterly free cash flow in the fourth quarter. The company’s cash flow surged 266% year over year to $250.4 million, with cash equivalents reaching $793.4 million. Also, it reported a record working capital of $733.6 million.

AG currently owns four operating mines in the country including the likes of Santa Elena Silver/Gold mine, Los Gatos Silver mine, San Dimas Silver/Gold mine and La Encantada Silver mine. Despite AG having been experiencing major tax-related issues in Mexico, it is performing strongly, achieving record production across all its sites. In the fourth quarter, contributions from AG’s Santa Elena, Los Gatos, San Dimas and La Encantada mines to its total silver-equivalent ounces production were 29.1%, 26.7%, 31.2% and 12.8%, respectively.

Earnings Estimate Revisions

The Zacks Consensus Estimate for First Majestic’s 2026 earnings has been stable at 34 cents per share over the past 60 days. The consensus mark for 2027 earnings increased 20.6% to 76 cents per share.

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Stock Valuation

Despite the positives, AG’s lofty valuation remains a concern. The stock is trading at a forward 12-month price-to-earnings (P/E) ratio of 68.34X, higher than the industry average of 21.21X. Also, it is overvalued compared with both of its peers, Avino Silver and Pan American Silver. Notably, Avino Silver and Pan American Silver are currently trading at 25.77X and 16.51X, respectively.

Price-to-Earnings (Forward 12 Months)

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Our Final Take

First Majestic’s market leadership position, strength in acquired assets and strong liquidity position provide it with a competitive advantage to leverage the long-term demand prospects in silver and gold markets. Given the strength across its served markets, AG has built a healthy pipeline of projects that should support its top-line performance.

Despite its expensive valuation, positive analyst sentiment and robust growth prospects indicate it is the right time for potential investors to bet on this Zacks Rank #1 (Strong Buy) company. You can see the complete list of today’s Zacks #1 Rank stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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