4-Star Stocks Poised to Pop: Hecla Mining

Before you go, we thought you'd like these...
Before you go close icon

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, silver miner Hecla Mining (NYS: HL) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Hecla's business and see what CAPS investors are saying about the stock right now.

Hecla facts

Headquarters (Founded)Coeur d'Alene, Idaho (1891)
Market Cap$2.2 billion
IndustryPrecious metals and minerals
Trailing-12-Month Revenue$504.5 million
ManagementCEO Phillips Baker Jr. (since 2003)
CFO James Sabala (since 2008)
Return on Equity (Average, Past 3 Years)5.1%
Cash/Debt$377.4 million / $7.5 million
CompetitorsCoeur d'Alene (NYS: CDE)
Pan American Silver

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 95% of the 1,254 members who have rated Hecla believe the stock will outperform the S&P 500 going forward. These bulls include All-Star EnigmaDude, who is ranked in the top 2% of our community, and idvst8.

Just last week, EnigmaDude wrote that Hecla is just too attractive to pass up: "Not big on miners right now but Hecla looks pretty cheap and silver does not look like it will be crashing any time soon."

In fact, Hecla currently sports a cheapish EV/EBIDTA multiple of 7. That represents a discount to other silver stocks like Coeur d'Alene at 10, Silver Standard Resources (NAS: SSRI) at 33, and Silver Wheaton (NYS: SLW) at 28.

CAPS member idvst8 elaborates on the bull case:

With its EPA lawsuit settlement in the rearview mirror, HL is set to climb back into the teens as volume and liquidity return to the market. The days of $15 silver are long gone in my opinion, and Hecla is in a great position to capitalize on its vast Silver reserves, and ultra low production costs moving forward.

The mining Sector is oversold, and Hecla is a great long term buy at the $8.00 level in my opinion.

What do you think about Hecla, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Interested in another easy way to trackHecla?Add it to your watchlist.

At the time this article was published We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners