Stock Screener: This Gold Stock Packs A Punch At Less Than 10 Bucks

Kinross Gold (KGC) made Wednesday’s screen of Top Earnings Per Share, part of the IBD Stock Screener, after reporting first-quarter results.

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The screen finds leading companies trading under $10 with growing earnings per share. Although IBD advises to avoid low-priced stocks, Kinross has a daily average dollar volume of more than $8 million. That’s more liquidity than most under-$10 stocks. It trades an average of more than 14.8 million shares a day.

Kinross Gold is a gold mining and exploration company with mines in the U.S., Canada, Brazil, Chile and Mauritania.

The Canada-based miner is in the Mining-Gold/Silver/Gems group, which is ranked an elite No. 3 on the IBD list of 197 industry groups.

The company also holds the best-possible 99 IBD Composite Rating and a 94 EPS Rating.

Gold prices have rallied since March lows, trading around $2,030 per ounce. Factors such as a weak dollar, sticky inflation, and a potential interest rate-hike pause have lifted prices of the yellow metal.

Gold futures are up over 25% since the Nov. 3 lows.

Gold Stock Tops Buy Zone

The gold stock gained 2% Wednesday, following Tuesday’s earnings report. Shares are extended above the 5% buy zone, which goes to 5.25 from the 5.00 buy point.

Shares broke out of the base on April 4. They found support after pulling back to the buy point. Shares rode the 21-day exponential moving average all the way up from the bottom of the cup, in early March.

KGC stock is within 1% of its 52-week high. It has gained about 33% this year so far.

Stock Screener: Mining Stock Posts Strong Growth

Kinross reported mixed first-quarter results, beating earnings expectations but missing sales views late Tuesday. The gold miner reported EPS of 7 cents, up from 5 cents in the prior year’s same quarter, a 40% increase.

Earnings grew an impressive 350% and 400% in the previous two quarters. Q1 sales increased 33% to $929.3 million last quarter, following growth rates of 75% and 47% in the previous quarters.

The miner reported a 23% production increase from all of its sites.

“Our portfolio of operations is well positioned and on track to deliver our annual production and cost guidance,” said CEO J. Paul Rollinson. “We continue to maintain our financial strength and excellent liquidity, while bolstering our investment-grade balance sheet and continuing with our return of capital program.”

The company said it did not buy back any shares in the first quarter, but expects to buy back an undisclosed amount in the second half of this year.

Analysts project a hefty 39% EPS increase this year for the gold stock, then a 2% dip in 2024.

Follow Kimberley Koenig for more stock news on Twitter @IBD_KKoenig.

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