Despite an already strong run, Silvercorp Metals Inc. (TSE:SVM) shares have been powering on, with a gain of 26% in the last thirty days. Looking back a bit further, it’s encouraging to see the stock is up 32% in the last year.
After such a large jump in price, given around half the companies in Canada have price-to-earnings ratios (or “P/E’s”) below 14x, you may consider Silvercorp Metals as a stock to potentially avoid with its 19.8x P/E ratio. Although, it’s not wise to just take the P/E at face value as there may be an explanation why it’s as high as it is.
Silvercorp Metals certainly has been doing a good job lately as its earnings growth has been positive while most other companies have been seeing their earnings go backwards. It seems that many are expecting the company to continue defying the broader market adversity, which has increased investors’ willingness to pay up for the stock. If not, then existing…
