U.S. economic data released today show sales at retailers and restaurants gained by 0.1% in September from August, short of the estimated 0.2% rise, according to the Wall Street Journal.
The weak data are fueling expectations that the Federal Reserve will not hike interest rates during 2015, as the central bank has tied higher interest rates to stronger U.S. economic data.
Any delay to an interest rate increase benefits non-interest bearing commodities such as gold and silver, which will struggle to compete with yield-bearing assets amid higher rates.
Silver is up 1.34% to $16.12 per ounce, and gold is higher by 1.04% to $1,177.50 per ounce on the COMEX this morning.
Coeur Mining is a silver and gold producer.
Separately, TheStreet Ratings team rates COEUR MINING INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
We rate COEUR MINING INC (CDE) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Metals & Mining industry and the overall market, COEUR MINING INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for COEUR MINING INC is currently lower than what is desirable, coming in at 28.37%. Regardless of CDE's low profit margin, it has managed to increase from the same period last year.
- CDE's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 37.76%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- COEUR MINING INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, COEUR MINING INC reported poor results of -$11.28 versus -$6.44 in the prior year. This year, the market expects an improvement in earnings (-$0.85 versus -$11.28).
- CDE's debt-to-equity ratio of 0.75 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that CDE's debt-to-equity ratio is mixed in its results, the company's quick ratio of 2.08 is high and demonstrates strong liquidity.
- You can view the full analysis from the report here: CDE