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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 $45.72 in the latest trading session, marking a -1.02% move from the prior day. This change lagged the S&P 500's 0.41% gain on the day. At the same time, the Dow added 0.57%, and the tech-heavy Nasdaq gained 0.7%.

Heading into today, shares of the gold producer had lost 2.53% over the past month, lagging the Basic Materials sector's loss of 0.84% and the S&P 500's gain of 2.04% in that time.

KL 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 KL to post earnings of $0.76 per share. This would mark year-over-year growth of 171.43%. Meanwhile, our latest consensus estimate is calling for revenue of $371.18 million, up 66.67% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.63 per share and revenue of $1.31 billion. These totals would mark changes of +93.38% and +43.52%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for KL. 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. 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 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. The Zacks Consensus EPS estimate has moved 11.46% higher within the past month. KL is holding a Zacks Rank of #1 (Strong Buy) right now.

Looking at its valuation, KL is holding a Forward P/E ratio of 17.58. This valuation marks a discount compared to its industry's average Forward P/E of 34.27.

The Mining - Gold industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 13, putting it in the top 6% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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