Randgold Resources Ltd. (GOLD): Zacks Rank Buy

Zacks

Randgold Resources Ltd. (NasdaqGS:GOLD - News) is trading strong in the weak market, recently hitting a new 52-week high as investors shift into safety assets. With a great quarter in hand and bullish growth projection, this Zacks #1 Rank stock has a shine for momentum.

Company Description

Randgold Resources Ltd engages in the exploration and production of gold mines primarily in west and central Africa. The company was founded in 1995 and has a market cap of $9.3 billion.

Although Randgold has been fairly choppy for most of the year, shares recently got a nice boost into a new 52-week high on surging gold prices and strong Q2 results that came in ahead of expectations.

Second-Quarter Results

Earnings for the period came in at $1.22, 51% ahead of the Zacks Consensus Estimate as production almost doubled to 185,000 ounces.

Moving forward, the company said that it sees plenty of momentum in its business, confident that production and costs can be sustained to drive earnings growth.

Estimates

The analysts agreed with the optimistic take, with the current year adding 9 cents to $4.27 while the next-year estimate gained 10 cents to $6.08, a bullish 42% growth projection.

Valuation

But in spite of the gains GOLD still looks cheap, trading with a PEG ratio of .57 well below the benchmark for value of 1.

12-Month Chart

On the chart, GOLD recently jumped into a new 52-week high on higher gold prices and the good quarter. Take a look below.

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Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Momentum Trader Service.

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