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Kinross Gold (KGC) Gains But Lags Market: What You Should Know

Zacks Equity Research

Kinross Gold (KGC) closed at $4.61 in the latest trading session, marking a +0.22% move from the prior day. The stock lagged the S&P 500's daily gain of 0.29%. Elsewhere, the Dow gained 0.17%, while the tech-heavy Nasdaq added 0.19%.

Prior to today's trading, shares of the gold mining company had lost 15.29% over the past month. This has lagged the Basic Materials sector's loss of 3.13% and the S&P 500's gain of 0.32% in that time.

KGC will be looking to display strength as it nears its next earnings release, which is expected to be November 6, 2019. In that report, analysts expect KGC to post earnings of $0.08 per share. This would mark year-over-year growth of 300%.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.29 per share and revenue of $3.36 billion, which would represent changes of +190% and +4.46%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for KGC. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 13.41% higher. KGC is currently sporting a Zacks Rank of #1 (Strong Buy).

Digging into valuation, KGC currently has a Forward P/E ratio of 15.86. This valuation marks a discount compared to its industry's average Forward P/E of 31.4.

The Mining - Gold industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 16, putting it in the top 7% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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