The precious metal was climbing today as investors were betting that a rush of U.S. data set to be released next week will continue to show that the country's recovery is facing some obstacles, the Wall Street Journal reports.
Gold for June delivery was gaining by 1.18% to $1,207.70 per ounce on the COMEX this afternoon.
The U.S. is expected to report some key economic data next week, including industrial production and manufacturing data, the Journal said, adding that some investors believe the data will show the economy has hit a snag.
"If you get poor numbers out of the U.S. next week, it will take the dollar lower and gold higher, and it appears some investors are betting on that," INTL FCStone analyst Edward Meir told the Journal.
Hecla Mining's operations include the discovery, acquisition, development, production, and marketing of silver, gold, lead and zinc.
Hecla Mining is reversing some of today's gains in after-hours trading this afternoon as shares are lower by 1.41% to $3.23.
Separately, TheStreet Ratings team rates HECLA MINING CO as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate HECLA MINING CO (HL) a HOLD. The primary factors that have impacted our rating are mixed-some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and compelling growth in net income. However, as a counter to these strengths, we find that the stock has experienced relatively poor performance when compared with the S&P 500 during the past year."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 18.8%. Since the same quarter one year prior, revenues slightly increased by 6.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The current debt-to-equity ratio, 0.37, is low and is below the industry average, implying that there has been successful management of debt levels. Along with this, the company maintains a quick ratio of 2.69, which clearly demonstrates the ability to cover short-term cash needs.
- HECLA MINING CO reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, HECLA MINING CO turned its bottom line around by earning $0.05 versus -$0.08 in the prior year. For the next year, the market is expecting a contraction of 130.0% in earnings (-$0.02 versus $0.05).
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, HECLA MINING CO underperformed against that of the industry average and is significantly less than that of the S&P 500.
- In its most recent trading session, HL has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. We feel that the combination of its price rise over the last year and its current price-to-earnings ratio relative to its industry tend to reduce its upside potential.
- You can view the full analysis from the report here: HL Ratings Report