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

Zacks Equity Research

Kirkland Lake Gold (KL) closed at $45.39 in the latest trading session, marking a -0.22% move from the prior day. This change lagged the S&P 500's 0.47% gain on the day. Elsewhere, the Dow lost 0.29%, while the tech-heavy Nasdaq added 0.85%.

Heading into today, shares of the gold producer had gained 6.26% over the past month, outpacing the Basic Materials sector's gain of 2.56% and the S&P 500's gain of 2.08% in that time.

Wall Street will be looking for positivity from KL as it approaches its next earnings report date. This is expected to be July 30, 2019. On that day, KL is projected to report earnings of $0.49 per share, which would represent year-over-year growth of 63.33%. Meanwhile, our latest consensus estimate is calling for revenue of $273.55 million, up 27.44% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.23 per share and revenue of $1.29 billion, which would represent changes of +63.97% and +40.46%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for KL. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 7.73% higher. KL is currently sporting a Zacks Rank of #2 (Buy).

In terms of valuation, KL is currently trading at a Forward P/E ratio of 20.4. For comparison, its industry has an average Forward P/E of 32.24, which means KL is trading at a discount to the group.

The Mining - Gold industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 25, which puts it in the top 10% 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.

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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