Coeur Mining (CDE) Soars 12.5%: Is Further Upside Left in the Stock?

Coeur Mining (CDE) shares ended the last trading session 12.5% higher at $25.77. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 22.4% gain over the past four weeks.

Silver prices have gained 223.6% year over year, with gold prices up 77.9%, supported by strong safe-haven demand, geopolitical tensions and escalating trade conflicts. Silver has benefited from resilient industrial demand and mounting supply deficits. Demand for solar energy, electronics and electrification now accounts for more than half of global silver demand. Currently, silver is trading at a near record-high $99 and gold is trading near record high level of above $4,900 backed by continued geopolitical tensions and a weak dollar, which bodes well for prices. 

This silver mining company is expected to post quarterly earnings of $0.33 per share in its upcoming report, which represents a year-over-year change of +200%. Revenues are expected to be $668.7 million, up 119% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Coeur Mining, the consensus EPS estimate for the quarter has been revised 15.9% 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 CDE going forward to see if this recent jump can turn into more strength down the road.

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

Coeur Mining is part of the Zacks Mining - Non Ferrous industry. Energy Fuels (UUUU), another stock in the same industry, closed the last trading session 8.4% higher at $24.42. UUUU has returned 49.1% in the past month.

Energy Fuels' consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.08. Compared to the company's year-ago EPS, this represents a change of +57.9%. Energy Fuels currently boasts a Zacks Rank of #2 (Buy).

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

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