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Here's Why You Should Add Kinross (KGC) to Your Portfolio

Kinross Gold Corporation KGC stock looks promising at the moment. The company’s shares have rallied nearly 30% year to date.

If you haven’t taken advantage of the share price appreciation yet, the time is right for you to add the stock to your portfolio as it is poised to sustain its momentum.

Let’s delve into the factors that make this gold mining company an attractive investment option.

An Outperformer

Kinross has outperformed the industry it belongs to in the past year. The company’s shares have surged 76% compared with 59.9% rise of the industry.



Higher Gold Prices

Gold has been the bright spot this year as fears over the coronavirus pandemic has made it the most attractive safe-haven asset. Slump in crude oil prices, low interest rate environment and geopolitical tensions have also triggered demand for gold. In March 2020, prices of gold rose above the $1,700 an ounce level for the first time in seven years thanks to the pandemic and a sharp decline in oil prices triggered by Saudi Arabia's price war with Russia. Gold prices also recently surged past the $1,750 an ounce level, driven by the United States-China trade tensions, the civil unrest in the Unites States and a weaker U.S. dollar.

Key Growth Drivers

Kinross is making steady progress in advancing the major projects that provide it strong growth profile.

The company is likely to gain from its organic development projects and opportunities in the Americas. Paracatu is one of the largest producing mines of the company that is operating at low cost of production. It is delivering strong production. Moreover, the Gilmore project at Fort Knox is a low-cost brownfield expansion with low-risk that is likely to extend mine life to 2030. Kinross is also expected to gain from strong production at Tasiast. The Tasiast 24k project is expected to increase throughput capacity to 21,000 and 24,000 tons per day by the end of 2021 and mid-2023, respectively.

Estimates Moving North

Earnings estimate revisions have the greatest impact on stock prices. The Zacks Consensus Estimate for earnings for Kinross has moved up in the past two months. Over this period, earnings estimates for the second quarter have moved up 33.3%, while the same for 2020 rose 17%.

Strong Earnings Growth for 2020

The Zacks Consensus Estimate for 2020 earnings is currently pegged at 55 cents per share, which indicates an expected year-over-year earnings growth of 61.8%.

Kinross Gold Corporation Price and Consensus

Zacks Rank & Other Key Picks

Kinross currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the basic materials space are The Scotts Miracle-Gro Company SMG, Royal Gold, Inc. RGLD and Franco-Nevada Corporation FNV, all carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Scotts Miracle-Gro has an expected earnings growth rate of 17.7% for fiscal 2020. The company’s shares have surged 52.2% in the past year.

Royal Gold has an expected earnings growth rate of 67.6% for fiscal 2020. Its shares have returned 36.5% in the past year.

Franco-Nevada has an expected earnings growth rate of 20.3% for 2020. The company’s shares have surged 68.3% in the past year.

These Stocks Are Poised to Soar Past the Pandemic

The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.

Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.

See the 5 high-tech stocks now>>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Kinross Gold Corporation (KGC): Free Stock Analysis Report
 
FrancoNevada Corporation (FNV): Free Stock Analysis Report
 
The Scotts MiracleGro Company (SMG): Free Stock Analysis Report
 
Royal Gold, Inc. (RGLD): Free Stock Analysis Report
 
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