Are Fortuna Silver Mines Inc. (FSM) stocks a prudent buy?

At the time of writing, Fortuna Silver Mines Inc. [FSM] stock is trading at $3.63, up 7.40%. An important factor to consider is whether the stock is rising or falling in short-term value. The FSM shares have gain 3.12% over the last week, with a monthly amount glided 30.11%, and seem to be holding up well over a long-time horizon.

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On 9, November 2022, Fortuna Reports Results for the Third Quarter of 2022. In a post published today on Yahoo Finance, (All amounts expressed in US dollars, tabular amounts in millions, unless otherwise stated).

From an analyst’s perspective:

Fortuna Silver Mines Inc. [NYSE: FSM] stock has seen the most recent analyst activity on January 18, 2022, when Canaccord Genuity upgraded its rating to a Buy. Previously, Canaccord Genuity downgraded its rating to Sell on November 12, 2021. On November 12, 2021, downgrade downgraded it’s rating to Market Perform. Scotiabank downgraded its rating to a Sector Perform. CIBC downgraded its rating to a Neutral. Raymond James downgraded its rating to Outperform for this stock on November 21, 2017. In a note dated November 17, 2017, BMO Capital Markets initiated an Outperform rating.

For the past year, the stock price of Fortuna Silver Mines Inc. fluctuated between $2.05 and $4.68. Currently, Wall Street analysts expect the stock to reach $4.10 within the next 12 months. Fortuna Silver Mines Inc. [NYSE: FSM] shares were valued at $3.63 at the most recent close of the market. An investor can expect a potential return of 12.95% based on the average FSM price forecast.

Analyzing the FSM fundamentals

According to Fortuna Silver Mines Inc. [NYSE:FSM], the company’s sales were 216.93 billion in the recent quarter, which represents an 2.50% jump. Gross Margin for this corporation currently stands at +33.56% with Operating Margin at +26.13%, Pretax Margin comes in at +17.78%, and Net Margin reading is +9.60%.

Before buying any particular stock, readers tend to pay close attention to the indicators that support and create resistance. The company’s stock is currently sitting at 3.49 points at the first support level, and at 3.35 for the second support level. However, for the 1st resistance point, the stock is sitting at 3.70, and for the 2nd resistance point, it is at 3.77.

Fortuna Silver Mines Inc. [FSM] reported earnings per share of $0.01 for its fiscal quarter that ended on 6/29/2022. Based on the Wall Street analysts’ estimates, the company was expected to report earnings of $0.08/share, meaning a difference of -$0.07 and a surprise factor of -87.50%. By comparison, the stated earnings for the previous quarter ended on 3/30/2022 were $0.11 per share as compared to estimates of $0.1 per share, a difference of $0.01 representing a surprise of 10.00%.

Ratios To Look Out For

On the other hand, the Quick Ratio is 1.17, and the Cash Ratio is 0.64. Considering the valuation of this stock, the price to sales ratio is 1.63, the price to book ratio is 0.83 and the P/E (TTM) ratio is 30.25.