NEW YORK (TheStreet) -- Shares of Hecla Mining (HL - Get Report) are rising by 2.30% to $3.11 in mid-afternoon trading on Monday, as some stocks within the mining sector jump due to the rebound in the price of gold.
Gold for June delivery is soaring by 2.43% to $1,203.50 per ounce on the COMEX this afternoon.
The precious metal is climbing as investors are waiting for the outcome of this week's two day Fed meeting, scheduled to begin on Tuesday.
Signs of a slowdown in economic growth added to speculation that the Fed will not be looking to increase interest rates soon, Bloomberg reports.
"Based on the recent data, we're likely to see nothing great and maybe pushing the first tightening out to 2016," Bart Melek, head of commodity strategy at TD Securities in Toronto told Bloomberg.
"And overnight, we did get some sort of signaling from the government of China that they may do something unconventional on the monetary front," Melek added.
Hecla Mining is a Coeur d'Alene, ID.-based mining company that focuses on the discovery, acquisition, producing, and marketing of silver, gold, lead, and zinc.
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 had a generally disappointing performance in 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 150.0% in earnings (-$0.03 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. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
- You can view the full analysis from the report here: HL Ratings Report