The spot price of silver has managed to hang on to the gains it earned in the wake of the COVID-19 pandemic. However, it was not able to reach the same heights as the yellow metal did during the same period. Regardless, investors should not ignore the potential that silver still boasts as an alternative investment. Today, I want to take a snapshot of two silver stocks that look undervalued right now.

MAG Silver (TSX:MAG) is a Vancouver-based company that is engaged in the exploration and development of precious metals mining properties. Shares of this silver stock have plunged 27% in 2023 as of mid-afternoon trading on February 24.

In the third quarter of fiscal 2022, this company posted net income of $8.22 million or $0.08 per share – up from a net loss of $2.28 million or $0.02 per share in the third quarter of fiscal 2021. Shares of this silver stock are trading in favourable territory compared to its industry peers. Moreover, its earnings are on track for strong growth going forward.

First Majestic Silver (TSX:FR) is another Vancouver-based company that is engaged in the acquisition, exploration, development, and production of mineral properties with a focus on silver and gold production in North America. Shares of this silver stock have dropped 30% in the New Year.

The company unveiled its final batch of fiscal 2022 earnings on February 23. It achieved record production of 31.3 million silver equivalent ounces. Meanwhile, it posted record annual revenues of $624 million – up 7% from 2021. This is another stock that is trading in more attractive territory over its top competitors.