Hecla Mining (HL) Soars 5.9%: Is Further Upside Left in the Stock?

Hecla Mining (HL) shares ended the last trading session 5.9% higher at $6.82. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 16% gain over the past four weeks.

Hecla Mining shares have gained on the back of the increase in silver prices. Silver prices are currently at around $30.84 an ounce, reaching a two-month high. Prices have gained amid growing expectations that the Federal Reserve will take a more aggressive approach to cutting interest rates at this week’s meeting. Investors are pricing in a 59% chance that the Fed will opt for a 50-basis point cut. This follows weak August payroll data, which indicates further softening in the labor market.

This precious metals company is expected to post quarterly earnings of $0.02 per share in its upcoming report, which represents a year-over-year change of +300%. Revenues are expected to be $201.63 million, up 10.8% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Hecla Mining, the consensus EPS estimate for the quarter has been revised 33.3% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on HL going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Hecla Mining is part of the Zacks Mining - Silver industry. Pan American Silver (PAAS), another stock in the same industry, closed the last trading session 3.4% higher at $21.20. PAAS has returned 2% in the past month.

For Pan American Silver , the consensus EPS estimate for the upcoming report has changed -0.3% over the past month to $0.20. This represents a change of +1900% from what the company reported a year ago. Pan American Silver currently has a Zacks Rank of #3 (Hold).

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