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Strength Seen in Hecla Mining (HL): Can Its 8.6% Jump Turn into More Strength?

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Hecla Mining (HL - Free Report) shares ended the last trading session 8.6% higher at $5.46. 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 31.7% gain over the past four weeks.

Hecla Mining's stock has surged due to the rise in silver prices. Silver prices have climbed above the $26 per ounce mark, marking their highest point in more than two and a half years. This increase has been driven by safe-haven demand, amid escalating geopolitical tensions in the Middle East and Ukraine. Furthermore, optimism surrounding the solar industry's potential for increased silver usage has provided additional support for the metal. The sector currently consumes roughly a third of the global silver supply. This was bolstered by the IKEA Foundation's recent $100 million grant to the Drive Electric Campaign, aimed at accelerating the transition to electric vehicles in developing nations.

This precious metals company is expected to post quarterly loss of $0.01 per share in its upcoming report, which represents a year-over-year change of -200%. Revenues are expected to be $180.11 million, down 9.7% 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 remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. 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 a member of the Zacks Mining - Silver industry. One other stock in the same industry, Avino Silver (ASM - Free Report) , finished the last trading session 7.3% higher at $0.81. ASM has returned 51.8% over the past month.

Avino Silver's consensus EPS estimate for the upcoming report has changed -100% over the past month to $0. Compared to the company's year-ago EPS, this represents a change of -100%. Avino Silver currently boasts a Zacks Rank of #3 (Hold).


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