In the latest trading session, Galiano Gold (GAU - Free Report) closed at $1.85, marking a +1.09% move from the previous day. This change lagged the S&P 500's 1.24% gain on the day. At the same time, the Dow added 0.61%, and the tech-heavy Nasdaq gained 1.35%.
Prior to today's trading, shares of the gold mining company had gained 37.59% over the past month. This has outpaced the Basic Materials sector's gain of 14.47% and the S&P 500's gain of 7.09% in that time.
Investors will be hoping for strength from GAU as it approaches its next earnings release. The company is expected to report EPS of $0.01, down 66.67% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for GAU. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 2.63% higher. GAU is currently a Zacks Rank #1 (Strong Buy).
Valuation is also important, so investors should note that GAU has a Forward P/E ratio of 14.08 right now. Its industry sports an average Forward P/E of 26.93, so we one might conclude that GAU is trading at a discount comparatively.
The Mining - Gold industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 72, putting it in the top 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.