Kinross Gold (KGC) Stock Soaring Today as Gold Prices Rise

NEW YORK (TheStreet) -- Shares of Kinross Gold Corp. (KGC) are higher by 13.12% to $2.50 on heavy volume in late afternoon trading on Friday, as gold for December delivery rallied by 2.4% or $27.20, settling at $1,169.80 per troy ounce, the Wall Street Journal reports.

The biggest one-day percentage gain for gold since June 19 was spurred by data showing jobs growth in October was weaker than expected, the Journal added.

The Labor Department announced that last month the U.S. added 214,000 jobs. A survey of economists polled by the Journal expected nonfarm payrolls to rise by a seasonally adjusted 233,000, the Journal said.

Other gold stocks climbing higher today include Barrick Gold Corp. (ABX) , up by 6.61% to $12.09, Goldcorp Inc.  (GG) , higher by 6.95% to $19.84, and Yamana Gold Inc. (AUY) , soaring by 9.75% to $3.88 this afternoon.

Separately, TheStreet Ratings team rates KINROSS GOLD CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

"We rate KINROSS GOLD CORP (KGC) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • KGC's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 53.29%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • KGC, with its decline in revenue, slightly underperformed the industry average of 0.2%. Since the same quarter one year prior, revenues slightly dropped by 5.8%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • KINROSS GOLD CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, KINROSS GOLD CORP reported poor results of -$2.64 versus -$2.23 in the prior year. This year, the market expects an improvement in earnings ($0.12 versus -$2.64).
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, KINROSS GOLD CORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • 40.65% is the gross profit margin for KINROSS GOLD CORP which we consider to be strong. It has increased significantly from the same period last year. Despite the strong results of the gross profit margin, KGC's net profit margin of 4.83% significantly trails the industry average.
  • You can view the full analysis from the report here: KGC Ratings Report

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