Gold, silver prices soared as Trump won the US presidential election sparking a bout of extraordinary volatility that stirred financial markets around the world. Investors found safe haven in gold, triggering a spike in prices. Further, prices are riding high on the market perception that this may lead the Fed to hold off on the widely expected rate hike in December.
As it is, silver and gold have been major movers this year, gaining 35% and 19% so far owing to the slowdown in China, volatile equity markets due to Brexit, a dovish Fed and introduction of negative interest rates by several central banks (including Japan).
As per the Zacks Industry classification, the mining industry is grouped under the Basic Material sector - one of the 16 broad Zacks sectors. The curtains have fallen on the earnings of the sector with 100% of the S&P 500 participants having reported their numbers. The sector has put up a 4.7% growth in revenues following an 11.6% decline suffered in the second quarter.
The Basic Material sector is one of the 12 sectors that are in the growth territory this quarter. The 89% of the companies in the S&P 500 that have reported so far, registered an earnings growth of 4%. Taking into consideration the estimates from the still-to-come 55 index members, total earnings in the quarter is now anticipated to go up 3.3% year over year on the back of an 1.5% increase in revenues. This compares favorably with the decline of 2.8% in the second quarter on flat revenues. Though the growth rate is meager, but compared to the declines for five consecutive quarters, this is definitely an encouraging sign. (Read more: Earnings Recession Ends in Q3
Let's see what's in store for these miners that are set to report third-quarter numbers on Nov 11. MAG Silver Corp
focuses on acquiring, exploring, and development of district scale projects located primarily in the Mexican Silver Belt. It explores for copper, gold, silver, lead and zinc deposits.
Last quarter, the company had delivered a negative earnings surprise of 100.00%. It has an average negative earnings surprise of 85.42% in the last four quarters.
MAG SILVER CORP Price and EPS Surprise
MAG SILVER CORP Price and EPS Surprise | MAG SILVER CORP Quote
The Zacks Consensus Estimate for the third quarter is at a loss of 3 cents per share, in-line with the prior-year quarter. The stock's Earnings ESP of 0.00% and a Zacks Rank #3 (Hold) make surprise prediction difficult. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Mountain Province Diamonds Inc. MDM a diamond exploration and development company delivered a positive earnings surprise of 450% on average in the trailing four quarters.
MTN PROV DMND Price and EPS Surprise
MTN PROV DMND Price and EPS Surprise | MTN PROV DMND Quote
Once again, surprise prediction is difficult for Mountain Province Diamonds this quarter, given the company's Zacks Rank #3 and an Earnings ESP of 0.00%.
Pershing Gold Corporation PGLC engages in the exploration, development, and mining of gold and precious metals, primarily in Nevada.
The company posted a positive earnings surprise of 20% last quarter. It has an average negative earnings surprise of 66.32% for the trailing four quarters.
PERSHING GLD CP Price
PERSHING GLD CP Price | PERSHING GLD CP Quote
The Zacks Consensus Estimate for the third quarter is at a loss of 14 cents per share, an improvement from a loss of 27 cents in the prior-year quarter. The company's Earnings ESP of 0.00% and a Zacks Rank #3 make surprise prediction difficult. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PERSHING GLD CP (PGLC): Free Stock Analysis Report MTN PROV DMND (MDM): Free Stock Analysis Report MAG SILVER CORP (MAG): Free Stock Analysis Report To read this article on Zacks.com click here.