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Bull of the Day: Eldorado Gold (EGO)

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It’s time to go digging for gold, literally. While the broader market has been jostling between interest rate anxiety and soft-landing optimism, the yellow metal has been stealthily consolidating gains. Meanwhile, there's one stock in the precious metals space that’s glimmering more than the rest. Today’s Bull of the Day is Zacks Rank #1 (Strong Buy) Eldorado Gold ((EGO - Free Report) ), a mid-tier gold miner that’s setting itself up for a breakout year.

Eldorado Gold is a Canadian-based gold and base metals producer with mining, development and exploration operations in Turkey, Canada, and Greece. While many of its peers overextend and overpromise, EGO has stayed lean, focused, and smart about where and how it digs.

In a world where geopolitical risk is part of the game, Eldorado’s diversified asset base gives it a cushion. From the high-grade Lamaque mine in Quebec to the Skouries project in Greece, EGO is sitting on a resource base that’s about to deliver serious production upside.

The reason for the favorable rank is that 4 analysts have increased their earnings estimates for the current year and next year. The bullish sentiment has pushed up our Zacks Consensus Estimate from $1.42 to $1.65 for the current year while next year’s number is up from $1.76 to $2.53.

That means that next year’s earnings growth is forecast to come in at 53%. That’s on revenue growth forecasts of 19% this year and 36% next year.

Zacks Investment Research
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This growth is clearly illustrated in our Price, Consensus and EPS Surprise Chart on Zacks.com. Estimates have gone from bottoming out in late 2023 to ticking higher until the start of this year, when estimates retreated a touch. They bottomed out at the start of Q3 and have been moving higher ever since. With geopolitical risk continuing despite talk of ceasefires and such, gold remains bid, helping the gold miners continue to shine.


 


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