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Kinross Gold Corporation (KGC) Hit a 52 Week High, Can the Run Continue?
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Have you been paying attention to shares of Kinross Gold (KGC - Free Report) ? Shares have been on the move with the stock up 24.3% over the past month. The stock hit a new 52-week high of $9.29 in the previous session. Kinross Gold has gained 52.2% since the start of the year compared to the -1.2% move for the Zacks Basic Materials sector and the 22% return for the Zacks Mining - Gold industry.
What's Driving the Outperformance?
The stock has a great 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 May 7, 2024, Kinross Gold reported EPS of $0.1 versus consensus estimate of $0.06.
For the current fiscal year, Kinross Gold is expected to post earnings of $0.52 per share on $4.58 billion in revenues. This represents a 18.18% change in EPS on an 8.13% change in revenues. For the next fiscal year, the company is expected to earn $0.60 per share on $4.4 billion in revenues. This represents a year-over-year change of 14.96% and -4.03%, respectively.
Valuation Metrics
Kinross 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 has run ahead of itself.
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. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Kinross Gold has a Value Score of A. The stock's Growth and Momentum Scores are B and B, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 17.6X current fiscal year EPS estimates, which is a premium to the peer industry average of 16.8X. On a trailing cash flow basis, the stock currently trades at 7.4X versus its peer group's average of 10.4X. Additionally, the stock has a PEG ratio of 0.59. 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 look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Kinross Gold currently has a Zacks Rank of #2 (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 Kinross Gold passes the test. Thus, it seems as though Kinross Gold shares could still be poised for more gains ahead.
How Does KGC Stack Up to the Competition?
Shares of KGC 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 Eldorado Gold Corporation (EGO - Free Report) . EGO has a Zacks Rank of # 1 (Strong Buy) and a Value Score of B, a Growth Score of B, and a Momentum Score of C.
Earnings were strong last quarter. Eldorado Gold Corporation beat our consensus estimate by 80%, and for the current fiscal year, EGO is expected to post earnings of $1.09 per share on revenue of $1.26 billion.
Shares of Eldorado Gold Corporation have gained 12.1% over the past month, and currently trade at a forward P/E of 15.14X and a P/CF of 9.03X.
The Mining - Gold industry is in the top 23% of all the industries we have in our universe, so it looks like there are some nice tailwinds for KGC and EGO, even beyond their own solid fundamental situation.
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Kinross Gold Corporation (KGC) Hit a 52 Week High, Can the Run Continue?
Have you been paying attention to shares of Kinross Gold (KGC - Free Report) ? Shares have been on the move with the stock up 24.3% over the past month. The stock hit a new 52-week high of $9.29 in the previous session. Kinross Gold has gained 52.2% since the start of the year compared to the -1.2% move for the Zacks Basic Materials sector and the 22% return for the Zacks Mining - Gold industry.
What's Driving the Outperformance?
The stock has a great 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 May 7, 2024, Kinross Gold reported EPS of $0.1 versus consensus estimate of $0.06.
For the current fiscal year, Kinross Gold is expected to post earnings of $0.52 per share on $4.58 billion in revenues. This represents a 18.18% change in EPS on an 8.13% change in revenues. For the next fiscal year, the company is expected to earn $0.60 per share on $4.4 billion in revenues. This represents a year-over-year change of 14.96% and -4.03%, respectively.
Valuation Metrics
Kinross 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 has run ahead of itself.
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. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Kinross Gold has a Value Score of A. The stock's Growth and Momentum Scores are B and B, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 17.6X current fiscal year EPS estimates, which is a premium to the peer industry average of 16.8X. On a trailing cash flow basis, the stock currently trades at 7.4X versus its peer group's average of 10.4X. Additionally, the stock has a PEG ratio of 0.59. 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 look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Kinross Gold currently has a Zacks Rank of #2 (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 Kinross Gold passes the test. Thus, it seems as though Kinross Gold shares could still be poised for more gains ahead.
How Does KGC Stack Up to the Competition?
Shares of KGC 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 Eldorado Gold Corporation (EGO - Free Report) . EGO has a Zacks Rank of # 1 (Strong Buy) and a Value Score of B, a Growth Score of B, and a Momentum Score of C.
Earnings were strong last quarter. Eldorado Gold Corporation beat our consensus estimate by 80%, and for the current fiscal year, EGO is expected to post earnings of $1.09 per share on revenue of $1.26 billion.
Shares of Eldorado Gold Corporation have gained 12.1% over the past month, and currently trade at a forward P/E of 15.14X and a P/CF of 9.03X.
The Mining - Gold industry is in the top 23% of all the industries we have in our universe, so it looks like there are some nice tailwinds for KGC and EGO, even beyond their own solid fundamental situation.