First Majestic Silver Corp. AG investors have been witnessing some impressive gains from the stock of late. Shares of the precious metals mining company have gained 23.6% in the year-to-date period, outpacing the industry’s growth of 13.4% and the S&P 500 composite’s decline of 0.7%. The company has also outperformed other industry players like Hecla Mining Company HL and Pan American Silver Corp. PAAS, which have returned 1.4% and 11.3%, respectively, over the said time frame.
Closing at $20.58 on Friday, the stock is trading below its 52-week high of $32.04 but significantly higher than its 52-week low of $5.49.
AG Outperforms the Industry, S&P 500 & Peers
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In the first quarter of 2026, AG’s total production was 3.5 million ounces of silver and 34,341 gold ounces. It also includes 15.4 million pounds of zinc, 8.7 million pounds of lead and 262,913 pounds of copper. However, the silver and gold ounces produced reflected a decline of 5.4% and 6%, respectively, on a year-over-year basis. The decline was attributable to reduced head grade milled, indicating a lower cut-off grade.
Also, the company has been grappling with long-running issues in Mexico, primarily related to a major tax conflict with the Mexican government. 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. However, the ongoing legal and regulatory issues present a financial and operational risk to these sites despite their healthy production performances.
Nevertheless, in January 2025, First Majestic acquired Gatos Silver, gaining a 70% interest in the high-quality, long-life Cerro Los Gatos Silver underground mine and solidifying its position as an intermediate primary silver producer.
The company is also witnessing strength in its First Mint LLC business, its wholly owned minting facility. The business’ performance is being supported by strong sales of silver ounces. First Mint’s ISO 9001 certification (received in April 2025) has made the business’ silver product sales eligible for Individual Retirement Accounts (IRAs). Strong operational performance at the business has allowed First Majestic to sell a larger share of its total silver production to its bullion customers and shareholders.
Despite the recent decline, silver prices are expected to remain strong, supported by the persistent market deficit, high industrial demand in solar and AI sectors and strong safe-haven demand. Demand for electronics, electrification and solar energy now accounts for more than half of global silver demand.
Earnings Estimate Revisions
The Zacks Consensus Estimate for First Majestic’s 2026 earnings has surged 82.4% to 62 cents per share over the past 60 days. The consensus mark for 2027 earnings increased 42.1% to $1.08 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 27.41X, higher than the industry average of 15.21X. The stock is trading below its peer Hecla Mining but is currently overvalued to Pan American Silver. Notably, Hecla Mining and Pan American Silver are currently trading at 32.80X and 12.5X, respectively.
Price-to-Earnings (Forward 12 Months)
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Final Take on AG
First Majestic’s market leadership position, diversified assets and strong operational execution provide it with a competitive advantage to leverage the long-term demand prospects in the silver and gold markets. However, the Zacks Rank #3 (Hold) company has been facing several challenges, including taxation issues in Mexico and reduced head grade milled.
While current shareholders should hold their positions, new investors should wait for the stock to retract some of its recent gains and provide a better entry point. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Hecla Mining Company (HL): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).