Avino Silver & Gold Mines Price Target Cut to $1.80/Share From $1.90 by Roth MKM

For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Avino Silver (ASM) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Basic Materials peers, we might be able to answer that question.

Avino Silver is a member of our Basic Materials group, which includes 235 different companies and currently sits at #13 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Avino Silver is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for ASM's full-year earnings has moved 12.5% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

According to our latest data, ASM has moved about 109.9% on a year-to-date basis. In comparison, Basic Materials companies have returned an average of -4.3%. This means that Avino Silver is performing better than its sector in terms of year-to-date returns.

Another Basic Materials stock, which has outperformed the sector so far this year, is Triple Flag Precious Metals (TFPM). The stock has returned 21.5% year-to-date.

The consensus estimate for Triple Flag Precious Metals' current year EPS has increased 6.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Avino Silver belongs to the Mining - Silver industry, which includes 9 individual stocks and currently sits at #48 in the Zacks Industry Rank. On average, stocks in this group have gained 27.4% this year, meaning that ASM is performing better in terms of year-to-date returns.

In contrast, Triple Flag Precious Metals falls under the Mining - Gold industry. Currently, this industry has 38 stocks and is ranked #29. Since the beginning of the year, the industry has moved +10.8%.

Investors with an interest in Basic Materials stocks should continue to track Avino Silver and Triple Flag Precious Metals. These stocks will be looking to continue their solid performance.

Zacks Investment Research

Avino Silver (ASM) came out with quarterly earnings of $0.04 per share, beating the Zacks Consensus Estimate of $0.02 per share. This compares to earnings of $0.01 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 100%. A quarter ago, it was expected that this company would post earnings of $0.02 per share when it actually produced earnings of $0.03, delivering a surprise of 50%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Avino Silver, which belongs to the Zacks Mining - Silver industry, posted revenues of $14.62 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 1.24%. This compares to year-ago revenues of $12.32 million. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Avino Silver shares have added about 104.2% since the beginning of the year versus the S&P 500's gain of 25.8%.

What's Next for Avino Silver?

While Avino Silver has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Avino Silver: favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.02 on $16.4 million in revenues for the coming quarter and $0.05 on $60.15 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Mining - Silver is currently in the top 9% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the broader Zacks Basic Materials sector, Northern Technologies (NTIC), is yet to report results for the quarter ended August 2024.

This rust and corrosion prevention company is expected to post quarterly earnings of $0.19 per share in its upcoming report, which represents a year-over-year change of +533.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Northern Technologies' revenues are expected to be $22.5 million, up 8.6% from the year-ago quarter.

Zacks Investment Research

Hecla Mining (HL) came out with quarterly earnings of $0.03 per share, beating the Zacks Consensus Estimate of $0.02 per share. This compares to loss of $0.01 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 50%. A quarter ago, it was expected that this precious metals company would post earnings of $0.01 per share when it actually produced earnings of $0.02, delivering a surprise of 100%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

Hecla Mining, which belongs to the Zacks Mining - Silver industry, posted revenues of $245.09 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 7.44%. This compares to year-ago revenues of $181.91 million. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Hecla Mining shares have added about 31% since the beginning of the year versus the S&P 500's gain of 21.2%.

What's Next for Hecla Mining?

While Hecla Mining has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Hecla Mining: favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.03 on $237.61 million in revenues for the coming quarter and $0.07 on $903.46 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Mining - Silver is currently in the top 18% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, Avino Silver (ASM), is yet to report results for the quarter ended September 2024. The results are expected to be released on November 12.

This company is expected to post quarterly earnings of $0.02 per share in its upcoming report, which represents a year-over-year change of +100%. The consensus EPS estimate for the quarter has been revised 100% higher over the last 30 days to the current level.

Avino Silver's revenues are expected to be $14.8 million, up 20.1% from the year-ago quarter.

Zacks Investment Research

Citi analysts recently weighed in on the rally in precious metals, with the firm increasing their gold price forecast for the next 3 months, citing further U.S. labor market worsening, physical and ETF buying of gold, and expected interest rate cuts from the Federal Reserve. The new 3-month gold price target is $2,800 per ounce, up from $2,700, while the 6-10 month target is $3,000. For comparison, last week's new high in December gold futures (GCZ24) was $2,772.

Similarly, Citi upwardly revised their 6-12 month target for silver from $38 to $40 per ounce, compared to December silver's (SIZ24) recently tagged peak around $35.

For investors looking to target additional upside in silver prices, mining stocks often move in tandem with the asset. Here's a look at two penny stocks that could get a boost from continued upside in silver.

#1. Avino Silver and Gold Mines Ltd.

Avino Silver and Gold Mines Ltd. is a mineral resource company that is involved in the exploration, extraction, and refining of gold, silver, and copper (HGZ24), along with the advancement of mineral properties. It owns interests in 42 mineral properties, with 4 more leased claims.

Incorporated in 1968, the company operates across Canada and Mexico, with its headquarters in Vancouver, Canada.

With a market cap of $194.05 million, ASM stock is up nearly 172% YTD.