Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Hecla Mining ( HL) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Hecla Mining as such a stock due to the following factors:

  • HL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $17.1 million.
  • HL has traded 917,780 shares today.
  • HL is down 3.4% today.
  • HL was up 5% yesterday.

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More details on HL:

Hecla Mining Company, together with its subsidiaries, discovers, acquires, develops, produces, and markets precious and base metals worldwide. It offers unrefined gold and silver bullion bars to precious metals traders; and lead, zinc, and bulk concentrates to custom smelters. The stock currently has a dividend yield of 0.5%. Currently there are 2 analysts that rate Hecla Mining a buy, 1 analyst rates it a sell, and 5 rate it a hold.

The average volume for Hecla Mining has been 5.4 million shares per day over the past 30 days. Hecla has a market cap of $761.9 million and is part of the basic materials sector and metals & mining industry. The stock has a beta of 1.21 and a short float of 6.9% with 3.03 days to cover. Shares are down 25.6% year-to-date as of the close of trading on Monday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Hecla Mining as a sell. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself and disappointing return on equity.

Highlights from the ratings report include:
  • HL'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 32.74%, 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.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Metals & Mining industry and the overall market, HECLA MINING CO's return on equity has significantly outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • HECLA MINING CO 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, HECLA MINING CO swung to a loss, reporting -$0.08 versus $0.05 in the prior year. This year, the market expects an improvement in earnings ($0.01 versus -$0.08).
  • 39.98% is the gross profit margin for HECLA MINING CO which we consider to be strong. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -12.25% is in-line with the industry average.
  • Net operating cash flow has significantly increased by 2555.85% to $26.65 million when compared to the same quarter last year. In addition, HECLA MINING CO has also vastly surpassed the industry average cash flow growth rate of -42.33%.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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