Why SSR Mining Stock Popped Today
Key Points
Gold and silver prices, which fell yesterday, perked back up today.
SSR Mining reports Q4 earnings on Tuesday.
After four straight days of gains, SSR Mining (NASDAQ: SSRM) stock took a breather yesterday, falling nearly 6% -- then perked right back up!
In morning trading, 10:35 a.m. ET Friday, shares of the gold miner (which also mines copper, silver, lead, and zinc) are up 6.2% -- right back to Wednesday's price.
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Gold and silver prices rise
No mystery why -- the price of gold is rising. After hitting an all-time high of $5,419.80 per ounce on Jan. 28, gold prices tumbled to almost $4,500 in early February, according to data from TradingEconomics.com. Gold moved back above the $5,000 threshold last week, slipped below it yesterday (which is why SSR's stock price fell), and is back above $5,000 today -- $5,001 per ounce, to be precise.
The story on silver is similar. Silver prices peaked on Jan. 28 at $116.58 per ounce. Silver prices fell to $66, then bounced back above $80, only to fall nearly 10% yesterday. At last report, silver is up about 0.9% today, passing $78 and heading toward $79.
It makes sense that with gold and silver up today, SSR Mining stock is up, too.
Is SSR Mining stock a buy?
Will SSR Mining stock continue to rise? That depends largely on how much it's been able to earn from the rising prices of gold and silver. We'll find that out Tuesday, Feb. 17, when SSR reports Q4 earnings.
Analysts predict SSR will earn $0.57 per share -- nearly six times Q4 2024 profit -- with full-year earnings of $1.72. On SSR's $28 stock price, that works out to a 16 price-to-earnings ratio on a stock that -- analysts say -- will more than double earnings every year for the next five years.
Sounds like a buy to me.
Rich Smith has positions in SSR Mining. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.