Louis Navellier’s The Little Book That Makes You Rich outlines a straightforward but rigorous framework for identifying high-growth stocks. The strategy is built on eight fundamental rules, ranging from positive earnings revisions and consistent earnings surprises to accelerating sales growth, expanding margins, and strong cash flow generation. Investors applying this methodology look for companies that not only report strong historical performance but also demonstrate the operational momentum and financial health necessary to sustain growth. After running a screen based on these exact criteria, Hecla Mining Co. (NYSE:HL) emerges as a strong candidate worth a closer look.
How Hecla Mining Measures Up Against the Eight Rules
The screen we ran translates Navellier’s rules into specific numerical thresholds. Hecla does not just meet these thresholds in many cases — it significantly surpasses them, which is exactly the kind of signal the strategy is designed to catch.
-
Positive Earnings Revisions: The strategy looks for analyst estimates to be revised upward by at least 4% over the last three months. Hecla comfortably clears this bar, with a revision of 5.88% over that period. This suggests analysts are seeing improving fundamentals and feel confident enough to adjust their models upward — a core catalyst for future price appreciation.
-
Positive Earnings Surprises: Navellier emphasizes the importance of companies consistently beating expectations. The screen requires at least three positive surprises out of the last four quarters and an average beat above 10%. Hecla has delivered exactly three beats, with an average EPS surprise of 27.72%. This level of outperformance indicates that management is executing well and that the company has more operational leverage than the consensus expects.
-
Increasing Sales Growth: Revenue must grow by at least 20% on both a year-over-year (TTM) and quarter-over-quarter basis. Hecla reports revenue growth of 57.04% (TTM) and 57.43% (Q2Q). Both figures are nearly triple the required threshold, pointing to strong demand for its metals and effective execution across its mining operations.
-
Expanding Operating Margin: The operating margin must have expanded by at least 2% over the past year. Hecla’s operating margin growth of 165.72% shows a dramatic improvement in profitability, not just revenue. This suggests the company is scaling efficiently, with costs growing more slowly than income.
-
Strong Cash Flow: Free cash flow (FCF) growth of at least 15% is required. Hecla’s FCF growth over the past year stands at an extraordinary 392.91%. This is a strong indicator of financial health, giving the company flexibility to reinvest in operations, pay down debt, or return capital to shareholders.
-
Earnings Growth: The screen demands at least 15% growth in EPS on both a TTM and Q2Q basis. Hecla reports TTM EPS growth of 415.38% and Q2Q EPS growth of 525%. These numbers reflect a business that is not just growing — it is compounding earnings at a rapid clip.
-
Positive Earnings Momentum: The strategy requires that the current quarter’s Q2Q EPS growth rate exceed the prior quarter’s rate. Hecla’s current Q2Q EPS growth of 525% compares with 300% from four quarters ago, confirming that earnings momentum is indeed accelerating.
-
High Return on Equity: A minimum ROE of 10% is required. Hecla’s ROE of 10.63% just clears this bar, and the improving trend is a positive sign for long-term value creation.
A High-Level Look at the Fundamentals
Beyond the screen parameters, Hecla’s broader fundamental profile reinforces its suitability for growth investors. You can review the full details in the fundamental analysis report, but the key takeaways are clear.
Profitability metrics are strong across the board. The company’s operating margin of 44.47% ranks in the top 13% of the Metals & Mining industry, and its profit margin of 17.37% is also well above peers. The balance sheet is equally healthy, with an Altman-Z score of 8.96 indicating no near-term bankruptcy risk, a debt-to-equity ratio of just 0.10, and a current ratio of 4.94. In short, Hecla combines rapid growth with a sound financial foundation — a rare and desirable mix.
The valuation picture is also reasonable for a growth stock. While the trailing P/E of 22.76 is not cheap in absolute terms, it is below the industry average and the S&P 500. The forward P/E of 12.55 suggests that expected earnings growth will compress the multiple further, and the low PEG ratio implies the stock is actually inexpensive relative to its growth trajectory.
Finding More Opportunities
Hecla is a strong example of how Navellier’s rules can surface high-quality growth names, but it is by no means the only one. Investors can run this same screen themselves to find additional stocks that meet all eight criteria, adjust the parameters to fit their own risk tolerance, or combine the results with technical filters for better entry timing. For more details and to see the full list of current results, check out the Little Book screener. This tool lets you explore the full set of companies currently passing all the filters, giving you a starting point for your own due diligence.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Always conduct your own research before making any investment decisions.
Read full article here »
View the Zacks #1 Rank List
Hecla Mining Co. (NYSE:HL) Emerges as a High-Growth Stock in Navellier-Based Screen
Louis Navellier’s The Little Book That Makes You Rich outlines a straightforward but rigorous framework for identifying high-growth stocks. The strategy is built on eight fundamental rules, ranging from positive earnings revisions and consistent earnings surprises to accelerating sales growth, expanding margins, and strong cash flow generation. Investors applying this methodology look for companies that not only report strong historical performance but also demonstrate the operational momentum and financial health necessary to sustain growth. After running a screen based on these exact criteria, Hecla Mining Co. (NYSE:HL) emerges as a strong candidate worth a closer look.
How Hecla Mining Measures Up Against the Eight Rules
The screen we ran translates Navellier’s rules into specific numerical thresholds. Hecla does not just meet these thresholds in many cases — it significantly surpasses them, which is exactly the kind of signal the strategy is designed to catch.
Positive Earnings Revisions: The strategy looks for analyst estimates to be revised upward by at least 4% over the last three months. Hecla comfortably clears this bar, with a revision of 5.88% over that period. This suggests analysts are seeing improving fundamentals and feel confident enough to adjust their models upward — a core catalyst for future price appreciation.
Positive Earnings Surprises: Navellier emphasizes the importance of companies consistently beating expectations. The screen requires at least three positive surprises out of the last four quarters and an average beat above 10%. Hecla has delivered exactly three beats, with an average EPS surprise of 27.72%. This level of outperformance indicates that management is executing well and that the company has more operational leverage than the consensus expects.
Increasing Sales Growth: Revenue must grow by at least 20% on both a year-over-year (TTM) and quarter-over-quarter basis. Hecla reports revenue growth of 57.04% (TTM) and 57.43% (Q2Q). Both figures are nearly triple the required threshold, pointing to strong demand for its metals and effective execution across its mining operations.
Expanding Operating Margin: The operating margin must have expanded by at least 2% over the past year. Hecla’s operating margin growth of 165.72% shows a dramatic improvement in profitability, not just revenue. This suggests the company is scaling efficiently, with costs growing more slowly than income.
Strong Cash Flow: Free cash flow (FCF) growth of at least 15% is required. Hecla’s FCF growth over the past year stands at an extraordinary 392.91%. This is a strong indicator of financial health, giving the company flexibility to reinvest in operations, pay down debt, or return capital to shareholders.
Earnings Growth: The screen demands at least 15% growth in EPS on both a TTM and Q2Q basis. Hecla reports TTM EPS growth of 415.38% and Q2Q EPS growth of 525%. These numbers reflect a business that is not just growing — it is compounding earnings at a rapid clip.
Positive Earnings Momentum: The strategy requires that the current quarter’s Q2Q EPS growth rate exceed the prior quarter’s rate. Hecla’s current Q2Q EPS growth of 525% compares with 300% from four quarters ago, confirming that earnings momentum is indeed accelerating.
High Return on Equity: A minimum ROE of 10% is required. Hecla’s ROE of 10.63% just clears this bar, and the improving trend is a positive sign for long-term value creation.
A High-Level Look at the Fundamentals
Beyond the screen parameters, Hecla’s broader fundamental profile reinforces its suitability for growth investors. You can review the full details in the fundamental analysis report, but the key takeaways are clear.
Profitability metrics are strong across the board. The company’s operating margin of 44.47% ranks in the top 13% of the Metals & Mining industry, and its profit margin of 17.37% is also well above peers. The balance sheet is equally healthy, with an Altman-Z score of 8.96 indicating no near-term bankruptcy risk, a debt-to-equity ratio of just 0.10, and a current ratio of 4.94. In short, Hecla combines rapid growth with a sound financial foundation — a rare and desirable mix.
The valuation picture is also reasonable for a growth stock. While the trailing P/E of 22.76 is not cheap in absolute terms, it is below the industry average and the S&P 500. The forward P/E of 12.55 suggests that expected earnings growth will compress the multiple further, and the low PEG ratio implies the stock is actually inexpensive relative to its growth trajectory.
Finding More Opportunities
Hecla is a strong example of how Navellier’s rules can surface high-quality growth names, but it is by no means the only one. Investors can run this same screen themselves to find additional stocks that meet all eight criteria, adjust the parameters to fit their own risk tolerance, or combine the results with technical filters for better entry timing. For more details and to see the full list of current results, check out the Little Book screener. This tool lets you explore the full set of companies currently passing all the filters, giving you a starting point for your own due diligence.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Always conduct your own research before making any investment decisions.
Read full article here »