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Kirkland Lake Gold (KL) Gains But Lags Market: What You Should Know

Zacks Equity Research
Brown & Brown (BRO) delivered earnings and revenue surprises of 14.29% and 3.33%, respectively, for the quarter ended June 2019. Do the numbers hold clues to what lies ahead for the stock?

Kirkland Lake Gold (KL) closed at $31.01 in the latest trading session, marking a +0.23% move from the prior day. This change lagged the S&P 500's 0.96% gain on the day. Elsewhere, the Dow gained 0.75%, while the tech-heavy Nasdaq added 1.58%.

Coming into today, shares of the gold producer had lost 5.09% in the past month. In that same time, the Basic Materials sector lost 1.54%, while the S&P 500 gained 1.85%.

Wall Street will be looking for positivity from KL as it approaches its next earnings report date. This is expected to be May 7, 2019. In that report, analysts expect KL to post earnings of $0.52 per share. This would mark year-over-year growth of 108%. Our most recent consensus estimate is calling for quarterly revenue of $289.89 million, up 46.23% from the year-ago period.

KL's full-year Zacks Consensus Estimates are calling for earnings of $1.99 per share and revenue of $1.24 billion. These results would represent year-over-year changes of +46.32% and +35.27%, respectively.

It is also important to note the recent changes to analyst estimates for KL. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.5% lower. KL is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, KL is holding a Forward P/E ratio of 15.53. This valuation marks a discount compared to its industry's average Forward P/E of 30.09.

The Mining - Gold industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 78, which puts it in the top 31% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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