Iamgold (IAG) closed at $7.08 in the latest trading session, marking a -4.07% move from the prior day. The stock's change was less than the S&P 500's daily gain of 0.52%. Meanwhile, the Dow experienced a rise of 1%, and the technology-dominated Nasdaq saw an increase of 0.52%.
The gold and niobium mining company's stock has climbed by 8.85% in the past month, exceeding the Basic Materials sector's gain of 4.06% and the S&P 500's gain of 5.95%.
Invest in Gold
The investment community will be paying close attention to the earnings performance of Iamgold in its upcoming release. The company is predicted to post an EPS of $0.18, indicating a 12.5% growth compared to the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.78 per share and revenue of $2.42 billion, which would represent changes of +41.82% and +48.35%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Iamgold. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 3.1% higher. Iamgold currently has a Zacks Rank of #3 (Hold).
With respect to valuation, Iamgold is currently being traded at a Forward P/E ratio of 9.52. This denotes a discount relative to the industry average Forward P/E of 12.57.
It is also worth noting that IAG currently has a PEG ratio of 0.38. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Mining – Gold stocks are, on average, holding a PEG ratio of 0.56 based on yesterday's closing prices.
The Mining – Gold industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 46, finds itself in the top 19% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
