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Here's Why You Should Invest in Kinross (KGC) Stock Now

Zacks Equity Research

Kinross Gold Corporation KGC stock looks promising at the moment. The company’s shares have rallied more than 35% year to date.

If you haven’t taken advantage of the share price appreciation yet, the time is right for you to add the stock to your portfolio as it is poised to sustain its momentum.

Let’s delve into the factors that make this gold mining company an attractive investment option.

Solid Rank & VGM Score

Kinross currently carries a Zacks Rank #2 (Buy) and a VGM Score of A. Our research shows that stocks with a VGM Score of A or B combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities for investors. Thus, the company is a compelling investment proposition at the moment.

An Outperformer

Kinross has outperformed the industry it belongs to in the past year. The company’s shares have surged 63.1% compared with 50.3% rise of the industry.



 

Estimates Moving North

Earnings estimate revisions have the greatest impact on stock prices. The Zacks Consensus Estimate for earnings for Kinross has moved up in the past month. Over this period, earnings estimates for the fourth quarter have moved up 25% while the same for 2019 rose nearly 7%.

Strong Earnings Growth for 2019

The Zacks Consensus Estimate for earnings for 2019 is currently pegged at 31 cents per share, which indicates an expected year-over-year growth of 210%.

Kinross Gold Corporation Price and Consensus

 

Kinross Gold Corporation Price and Consensus

Kinross Gold Corporation price-consensus-chart | Kinross Gold Corporation Quote

 

Key Growth Drivers

Kinross is making steady progress in advancing the major projects that provide it strong growth profile.

At Tasiast, production and cost performance were strong in the third quarter, which reflected the benefits of the Phase One expansion. Moreover, the company’s decision to move ahead with the capital efficient Tasiast 24k project is another upside. The project builds on the success of Phase One and consistent outperformance of the SAG mill, which are lowering capital costs and boosting returns.

Moreover, the company is likely to gain from its organic development projects and opportunities in the Americas. Paracatu is one of the largest producing mines of the company that is operating at low cost of production. Production at the mine continued to be strong in the third quarter along with low cost. The company expects 2019 to be a record year for the mine.

Other Key Picks

Some other top-ranked stocks in the basic materials space are Kirkland Lake Gold Ltd KL, Franco-Nevada Corporation FNV and Agnico Eagle Mines Limited AEM, each sporting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Kirkland Lake Gold has an expected earnings growth rate of 96.3% for the current year. The company’s shares have surged 151.6% in the past year.

Franco-Nevada has projected earnings growth rate of 46.2% for 2019. The company’s shares have rallied 40.2% in a year.

Agnico Eagle has an estimated earnings growth rate of 168.6% for the current year. Its shares have moved up 62.5% in the past year.

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