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Kirkland Lake Gold (KL) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

Kirkland Lake Gold (KL) closed the most recent trading day at $46.54, moving +1.24% from the previous trading session. This change outpaced the S&P 500's 0.36% gain on the day. At the same time, the Dow added 0.01%, and the tech-heavy Nasdaq gained 0.27%.

Prior to today's trading, shares of the gold producer had gained 15.56% over the past month. This has outpaced the Basic Materials sector's gain of 4.1% and the S&P 500's gain of 3.98% in that time.

KL will be looking to display strength as it nears its next earnings release. On that day, KL is projected to report earnings of $0.56 per share, which would represent year-over-year growth of 86.67%. Meanwhile, our latest consensus estimate is calling for revenue of $273.55 million, up 27.44% from the prior-year quarter.

KL's full-year Zacks Consensus Estimates are calling for earnings of $2.13 per share and revenue of $1.29 billion. These results would represent year-over-year changes of +56.62% and +40.46%, respectively.

Investors might also notice recent changes to analyst estimates for KL. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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 2.78% higher. KL is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, KL is holding a Forward P/E ratio of 21.61. This valuation marks a discount compared to its industry's average Forward P/E of 34.13.

The Mining - Gold industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 22, which puts it in the top 9% 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.

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

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