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Kinross Gold (KGC) Gains As Market Dips: What You Should Know

Zacks Equity Research

In the latest trading session, Kinross Gold (KGC) closed at $4.77, marking a +1.49% move from the previous day. This change outpaced the S&P 500's 0.08% loss on the day. Elsewhere, the Dow lost 0.07%, while the tech-heavy Nasdaq lost 0.59%.

Coming into today, shares of the gold mining company had gained 2.17% in the past month. In that same time, the Basic Materials sector gained 1.15%, while the S&P 500 gained 2.7%.

KGC will be looking to display strength as it nears its next earnings release, which is expected to be November 6, 2019. The company is expected to report EPS of $0.08, up 300% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.31 per share and revenue of $3.36 billion, which would represent changes of +210% 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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate has moved 14.81% higher. KGC is currently sporting a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, KGC is holding a Forward P/E ratio of 15.16. This valuation marks a discount compared to its industry's average Forward P/E of 33.38.

The Mining - Gold industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 17, putting it in the top 7% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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