Advertisement
U.S. markets close in 2 hours 7 minutes
  • S&P 500

    5,252.86
    +4.37 (+0.08%)
     
  • Dow 30

    39,783.79
    +23.71 (+0.06%)
     
  • Nasdaq

    16,382.58
    -16.95 (-0.10%)
     
  • Russell 2000

    2,124.54
    +10.20 (+0.48%)
     
  • Crude Oil

    82.98
    +1.63 (+2.00%)
     
  • Gold

    2,241.20
    +28.50 (+1.29%)
     
  • Silver

    24.95
    +0.20 (+0.82%)
     
  • EUR/USD

    1.0800
    -0.0029 (-0.27%)
     
  • 10-Yr Bond

    4.2080
    +0.0120 (+0.29%)
     
  • GBP/USD

    1.2626
    -0.0012 (-0.09%)
     
  • USD/JPY

    151.3740
    +0.1280 (+0.08%)
     
  • Bitcoin USD

    70,746.53
    +1,693.60 (+2.45%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,952.62
    +20.64 (+0.26%)
     
  • Nikkei 225

    40,168.07
    -594.66 (-1.46%)
     

Can Kinross Gold (KGC) Keep the Earnings Surprise Streak Alive?

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Kinross Gold (KGC), which belongs to the Zacks Mining - Gold industry.

This gold mining company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 350%.

For the most recent quarter, Kinross Gold was expected to post earnings of $0.03 per share, but it reported $0.06 per share instead, representing a surprise of 100%. For the previous quarter, the consensus estimate was $0.01 per share, while it actually produced $0.07 per share, a surprise of 600%.

Price and EPS Surprise

With this earnings history in mind, recent estimates have been moving higher for Kinross Gold. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Kinross Gold has an Earnings ESP of +50% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #1 (Strong Buy), it shows that another beat is possibly around the corner.

When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's earnings miss.

Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.

Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Kinross Gold Corporation (KGC) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.

Advertisement