Strong On High Relative Volume: Hecla Mining (HL)

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 strong on high relative volume 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 $22.2 million.
  • HL has traded 915,690 shares today.
  • HL is trading at 2.24 times the normal volume for the stock at this time of day.
  • HL is trading at a new high 3.13% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in HL with the Ticky from Trade-Ideas. See the FREE profile for HL NOW at Trade-Ideas

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 0.4%. Currently there is 1 analyst that rates Hecla Mining a buy, 1 analyst rates it a sell, and 6 rate it a hold.

The average volume for Hecla Mining has been 7.5 million shares per day over the past 30 days. Hecla has a market cap of $933.1 million and is part of the basic materials sector and metals & mining industry. The stock has a beta of 0.94 and a short float of 6.7% with 2.69 days to cover. Shares are down 17.2% year-to-date as of the close of trading on Thursday.

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. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • HL has underperformed the S&P 500 Index, declining 9.58% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • 35.81% is the gross profit margin for HECLA MINING CO which we consider to be strong. Regardless of HL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, HL's net profit margin of 2.71% is significantly lower than the industry average.
  • 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 has 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 (-$0.02 versus -$0.08).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Metals & Mining industry. The net income increased by 143.5% when compared to the same quarter one year prior, rising from -$8.46 million to $3.68 million.

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

null

More from Markets

Global Stocks Mixed, Dollar Firm as Trade Tensions Keep Investors Cautious

Global Stocks Mixed, Dollar Firm as Trade Tensions Keep Investors Cautious

FTC Chair Says Agency Is Ready to Take on Big Tech; Walgreens Joins Dow -- ICYMI

FTC Chair Says Agency Is Ready to Take on Big Tech; Walgreens Joins Dow -- ICYMI

Dow Gets Swept Into Nasty Reversal Even as Nasdaq Posts New Record

Dow Gets Swept Into Nasty Reversal Even as Nasdaq Posts New Record

Zoom CEO Eric Yuan Leads Glassdoor's List of Top 100 CEOs

Zoom CEO Eric Yuan Leads Glassdoor's List of Top 100 CEOs

REPLAY: Jim Cramer on Fed Rate Hikes, Oil Prices and Starbucks Worries

REPLAY: Jim Cramer on Fed Rate Hikes, Oil Prices and Starbucks Worries