Today's Dead Cat Bounce Stock: Kinross Gold (KGC)
Trade-Ideas LLC identified Kinross Gold ( KGC) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Kinross Gold as such a stock due to the following factors:
- KGC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $92.8 million.
- KGC has traded 114,836 shares today.
- KGC is up 3.6% today.
- KGC was down 6.3% yesterday.
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More details on KGC: Kinross Gold Corporation, together with its subsidiaries, engages in the acquisition, exploration, development, and production of gold properties. Currently there are 6 analysts that rate Kinross Gold a buy, 2 analysts rate it a sell, and 7 rate it a hold. The average volume for Kinross Gold has been 18.3 million shares per day over the past 30 days. Kinross has a market cap of $6.5 billion and is part of the basic materials sector and metals & mining industry. Shares are up 197.2% year-to-date as of the close of trading on Tuesday.
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Analysis:
rates Kinross Gold as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the company's return on equity has been disappointing. Highlights from the ratings report include:
- Powered by its strong earnings growth of 42.63% and other important driving factors, this stock has surged by 118.14% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- KINROSS GOLD CORP has improved earnings per share by 42.6% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, KINROSS GOLD CORP continued to lose money by earning -$0.87 versus -$1.22 in the prior year. This year, the market expects an improvement in earnings ($0.02 versus -$0.87).
- Despite the weak revenue results, KGC has significantly outperformed against the industry average of 41.5%. Since the same quarter one year prior, revenues fell by 10.8%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Metals & Mining industry and the overall market, KINROSS GOLD CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full Kinross Gold Ratings Report.
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