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Bear of the Day: Equinox Gold (EQX)

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During this latest trend, with the dollar being routed and stimulus money falling from the sky, gold prices have surprisingly retreated a bit. It underlines the inverse correlation between interest rates and the base metal. Still, with gold over $1,800 an ounce things are good for gold miners. Which is why I was surprised to see earnings estimates moving in the wrong direction for a few of these miners. One of which is today’s Bear of the Day, Equinox Gold (EQX - Free Report) .

Equinox Gold Corp. engages in the acquisition, exploration, and development of mineral deposits. The company primarily explores for gold, copper, and silver deposits. Its principal properties include the Aurizona gold mine covering a total land package of approximately 107,023 hectares located in Brazil  and the Mesquite gold mine and the Castle Mountain property situated in California.

The stock is currently a Zacks Rank #5 (Strong Sell). The reason for the bad rating is negative moves in earnings estimates. Over the last week alone, analysts on Wall Street have cut their estimates for the current quarter, next quarter, current year and next year. The largest impact of these cuts can be seen in next year’s numbers where our Zacks Consensus Estimate has been slashed from $1.35 down to $1.05. The good news for investors is this still represents year-over-year earnings growth of 75%.

The Mining – Gold industry is in the Bottom 22% of our Zacks Industry Rank. However, there are a few stocks within the industry that are in the good graces of our Zacks Rank. Those included Zacks Rank #2 (Buy) Gold Fields (GFI - Free Report) and New Gold (NGD - Free Report) .

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