Markets

Kinross Gold (KGC) Stock Sinks As Market Gains: What You Should Know

In the latest trading session, Kinross Gold (KGC) closed at $8.61, marking a -1.94% move from the previous day. This move lagged the S&P 500's daily gain of 0.35%. Meanwhile, the Dow lost 0.1%, and the Nasdaq, a tech-heavy index, added 0.37%.

Heading into today, shares of the gold mining company had lost 0.68% over the past month, lagging the Basic Materials sector's gain of 3.33% and the S&P 500's gain of 4.32% in that time.

Investors will be hoping for strength from KGC as it approaches its next earnings release, which is expected to be November 4, 2020. The company is expected to report EPS of $0.20, up 150% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.72 per share and revenue of $4.17 billion, which would represent changes of +111.76% and +19.31%, respectively, from the prior year.

Any recent changes to analyst estimates for KGC should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 5.46% higher. KGC is currently a Zacks Rank #3 (Hold).

Looking at its valuation, KGC is holding a Forward P/E ratio of 12.24. Its industry sports an average Forward P/E of 20.44, so we one might conclude that KGC is trading at a discount comparatively.

The Mining - Gold industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 105, putting it in the top 42% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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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.

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