We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Eldorado Gold Corporation (EGO) Hits Fresh High: Is There Still Room to Run?
Read MoreHide Full Article
Have you been paying attention to shares of Eldorado Gold Corporation (EGO - Free Report) ? Shares have been on the move with the stock up 12.9% over the past month. The stock hit a new 52-week high of $16.72 in the previous session. Eldorado Gold Corporation has gained 27.9% since the start of the year compared to the -2% move for the Zacks Basic Materials sector and the 21.2% return for the Zacks Mining - Gold industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on April 25, 2024, Eldorado Gold reported EPS of $0.27 versus consensus estimate of $0.15.
For the current fiscal year, Eldorado Gold is expected to post earnings of $1.09 per share on $1.26 billion in revenues. This represents a 91.23% change in EPS on a 24.98% change in revenues. For the next fiscal year, the company is expected to earn $1.02 per share on $1.39 billion in revenues. This represents a year-over-year change of -6.88% and 9.73%, respectively.
Valuation Metrics
Eldorado Gold may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Eldorado Gold has a Value Score of B. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 15.2X current fiscal year EPS estimates, which is not in-line with the peer industry average of 16.6X. On a trailing cash flow basis, the stock currently trades at 9.1X versus its peer group's average of 10X. Additionally, the stock has a PEG ratio of 0.3. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Eldorado Gold currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Eldorado Gold fits the bill. Thus, it seems as though Eldorado Gold shares could have a bit more room to run in the near term.
How Does EGO Stack Up to the Competition?
Shares of EGO have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Kinross Gold Corporation (KGC - Free Report) . KGC has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of B.
Earnings were strong last quarter. Kinross Gold Corporation beat our consensus estimate by 66.67%, and for the current fiscal year, KGC is expected to post earnings of $0.52 per share on revenue of $4.5 billion.
Shares of Kinross Gold Corporation have gained 24.4% over the past month, and currently trade at a forward P/E of 17.54X and a P/CF of 7.38X.
The Mining - Gold industry is in the top 19% of all the industries we have in our universe, so it looks like there are some nice tailwinds for EGO and KGC, even beyond their own solid fundamental situation.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Eldorado Gold Corporation (EGO) Hits Fresh High: Is There Still Room to Run?
Have you been paying attention to shares of Eldorado Gold Corporation (EGO - Free Report) ? Shares have been on the move with the stock up 12.9% over the past month. The stock hit a new 52-week high of $16.72 in the previous session. Eldorado Gold Corporation has gained 27.9% since the start of the year compared to the -2% move for the Zacks Basic Materials sector and the 21.2% return for the Zacks Mining - Gold industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on April 25, 2024, Eldorado Gold reported EPS of $0.27 versus consensus estimate of $0.15.
For the current fiscal year, Eldorado Gold is expected to post earnings of $1.09 per share on $1.26 billion in revenues. This represents a 91.23% change in EPS on a 24.98% change in revenues. For the next fiscal year, the company is expected to earn $1.02 per share on $1.39 billion in revenues. This represents a year-over-year change of -6.88% and 9.73%, respectively.
Valuation Metrics
Eldorado Gold may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Eldorado Gold has a Value Score of B. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 15.2X current fiscal year EPS estimates, which is not in-line with the peer industry average of 16.6X. On a trailing cash flow basis, the stock currently trades at 9.1X versus its peer group's average of 10X. Additionally, the stock has a PEG ratio of 0.3. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Eldorado Gold currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Eldorado Gold fits the bill. Thus, it seems as though Eldorado Gold shares could have a bit more room to run in the near term.
How Does EGO Stack Up to the Competition?
Shares of EGO have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Kinross Gold Corporation (KGC - Free Report) . KGC has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of B.
Earnings were strong last quarter. Kinross Gold Corporation beat our consensus estimate by 66.67%, and for the current fiscal year, KGC is expected to post earnings of $0.52 per share on revenue of $4.5 billion.
Shares of Kinross Gold Corporation have gained 24.4% over the past month, and currently trade at a forward P/E of 17.54X and a P/CF of 7.38X.
The Mining - Gold industry is in the top 19% of all the industries we have in our universe, so it looks like there are some nice tailwinds for EGO and KGC, even beyond their own solid fundamental situation.