Endeavour Silver (EXK) Surges 9.4%: Is This an Indication of Further Gains?

Endeavour Silver (EXK) shares rallied 9.4% in the last trading session to close at $6.76. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 9.8% gain over the past four weeks.

The company’s shares have gained as gold and silver prices soared to record highs, fueled by rising expectations of additional U.S. Federal Reserve rate cuts. The Fed lowered interest rates by 25 basis points last week and indicated the potential for two more reductions this year. Year to date, gold is up 40.4%, supported by safe-haven buying amid persistent geopolitical tensions, tariff concerns and strong central bank purchases. Silver is also backed by firm fundamentals, with robust demand from the solar, electric vehicle and electronics industries, while supply constraints continue to tighten the market.

This silver mining company is expected to post quarterly earnings of $0.05 per share in its upcoming report, which represents a year-over-year change of +400%. Revenues are expected to be $124.77 million, up 133.5% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Endeavour Silver, the consensus EPS estimate for the quarter has been revised 35.7% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on EXK going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Endeavour Silver belongs to the Zacks Mining - Silver industry. Another stock from the same industry, Hecla Mining (HL), closed the last trading session 1.8% higher at $10.96. Over the past month, HL has returned 40.1%.

Hecla Mining's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.09. Compared to the company's year-ago EPS, this represents a change of +200%. Hecla Mining currently boasts a Zacks Rank of #3 (Hold).

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This article originally published on Zacks Investment Research (zacks.com).

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