Today's video discusses one of the hottest areas of the stock market lately, the gold mining industry. No wonder this area has been in focus, as the gold miner ETF (GDX) has more than doubled on a YTD look, underscoring the bull run in this corner of the stock market.
However, cracks are starting to appear in the growth story, and GDX has been trending lower in recent sessions. Fortunately, we have a trio of earnings reports due out this week which should help to set the record straight and let us know if the gold mining trend is a fad, or if it is built on solid fundamentals.
First up, we have one of the big dogs of the space, Barrick Gold (ABX). This company has been seeing rising earnings estimates going into its report, and it has a pretty good history at earnings season too. Best of all, the company currently has a Zacks Rank #2 (buy) and an 'A' grade for its fundamentals including 'A' grades for both growth and momentum.
BARRICK GOLD CP Price, Consensus and EPS Surprise
BARRICK GOLD CP Price, Consensus and EPS Surprise | BARRICK GOLD CP Quote
Goldcorp (GG) also reports this week and the company has a bit more mixed track record when it comes to earnings season. However, it too has seen rising estimates and it currently has an impressive full year Earnings ESP too. And while this firm also has an 'A' grade for fundamentals, it actually has a Zacks Rank #1 (Strong Buy), putting it into a very exclusive club of stocks.
GOLDCORP INC Price, Consensus and EPS Surprise
GOLDCORP INC Price, Consensus and EPS Surprise | GOLDCORP INC Quote
Lastly, we have New Gold (NGD), by far the smallest on the list with a market cap below $3 billion. And while it might be small, it too has impressive fundamentals including an overall grade of 'B' on this front, in addition to a Zacks Rank #1 (Strong Buy). This company really looks to pack a punch in earnings season given its size and earnings ESP, so this will be one that will likely be on the move after it reports.
NEW GOLD INC Price, Consensus and EPS Surprise
NEW GOLD INC Price, Consensus and EPS Surprise | NEW GOLD INC Quote
Overall, the gold mining space is looking pretty great from a fundamental perspective. The gold mining industry is in the top 5% for the Zacks Industry and gains have been good this year so expectations are definitely high. Let's see if this trio of gold miners can live up to the hype when they give their quarterly reports.
If you want more insights on these companies, make sure to watch our short video which dives into the charts and some more fundamentals for each company. And if you'd like additional information on how to trade earnings reports, make sure to check out our podcast below:
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BARRICK GOLD CP (ABX): Free Stock Analysis Report
GOLDCORP INC (GG): Free Stock Analysis Report
NEW GOLD INC (NGD): Free Stock Analysis Report
VANECK-GOLD MNR (GDX): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
