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Bull of the Day: Kinross Gold (KGC)

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I know what you’re thinking. Gold stocks? In this environment? But hear me out. While the headlines are all about AI and big tech, there’s an undercurrent building, one that could make Kinross Gold ((KGC - Free Report) ) the golden child of your portfolio. That’s why I’m naming it today’s Bull of the Day.

Kinross Gold is a senior gold mining company with a diverse portfolio of mines in the United States, Brazil, Chile, Mauritania, and Canada. Unlike some of its peers, Kinross doesn’t just dig holes and hope for the best. They’ve focused on operational efficiency, cost control, and strategic asset optimization, all of which are showing up in the numbers.

Analysts have taken notice. Over the last 60 days, four analysts have increased their earnings estimates for the current year, and four have done the same for next year. That’s the kind of revision activity that drives our proprietary Zacks Rank. The Zacks Consensus Estimate for 2024 is now sitting at $1.04, up from 77 cents just two months ago.

That might not sound like a lot, but in the world of miners where margins can be razor-thin, this kind of upside momentum is critical. Nest year’s number is up from 80 cents to $1.16. That means current year EPS growth now calls for 52.94% growth while next year is expected to swell another 12.3% to $1.16.

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Let’s not ignore what’s happening in the broader macro environment. Gold has been blasting through record highs, and while some of that’s tied to short-term safe-haven demand, there's a longer-term play developing. The Fed is likely to act soon and when that happens, the dollar weakens and real yields come down, both of which are rocket fuel for gold prices.

Kinross, with its all-in sustaining costs (AISC) trending toward the lower end of the peer group, is poised to benefit disproportionately from every incremental uptick in the price of gold. If gold stays above $2,300/oz, Kinross won’t just be profitable, it’ll be wildly profitable.


 


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