By Paul R. La Monica
Silver is on a scintillating run, skyrocketing nearly 160% over the past 12 months to near a record high of about $80 an ounce. The rally pales in comparison to the surge for Hecla Mining, the largest silver miner in the U.S. and Canada.
Hecla shares are up more than 300% since early January 2025 and trading at a record high. The stock was up 7% Friday, along with the metal.
Could Hecla possibly still be a buy for investors who are coming late to the silver soiree? Or is it time to bail on Hecla?
Hecla has outperformed several other soaring silver miner stocks. Pan American Silver has pretty much run up in line with the metal, gaining more than 150% in the past year. First Majestic Silver has surged more than 220%. And the Global X Silver Miners exchange-traded fund is up 170% since January 2025. Hecla is the ETF's fourth-largest holding.
Wall Street is divided as to what's next for Hecla. Of the nine analysts that cover the stock, four recommend it as a Buy with the remaining five rating it a Hold.
It's understandable why investors (and some analysts) are excited about Hecla. Thanks in large part to the pop in silver prices, Wall Street is forecasting that the miner's net income will nearly double in 2026.
But is this already baked into Hecla's stock? It appears so. Shares are now trading at 30 times earnings estimates for 2026, a multiple on forward profit forecasts that's in line with its 5-year average. So there may be little room for upside. In fact, the consensus analyst price target for Hecla is $15.50 a share, a more than 25% decline from current levels of about $22.50.
Even the more bullish analysts covering the stock aren't calling for a big price jump. Michael Siperco of RBC Capital Markets, who has a Buy rating on the stock, has a price target of $19. That's the highest forecast on Wall Street, according to FactSet.
The bottom line? Shares of Hecla, as well as other silver miners, are going to rise and fall based on what silver prices do. If silver keeps climbing, analysts will likely need to raise their earnings estimates and price targets. But there's the rub. Silver prices look extremely stretched relative to gold and other commodities, notably oil.
"Silver has deviated from its linkages to gold and other precious metals, " said tk. "There should be more of a convergence. Silver has been unexpectedly strong."
So it may be hard for Hecla to keep shining if silver finally starts to lose some of its luster.
Write to Paul R. La Monica at paul.lamonica@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
January 09, 2026 13:42 ET (18:42 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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