Alamos Gold Q3 Adjusted Earnings, Revenue Increase

Investors looking for stocks in the Mining - Gold sector might want to consider either Newmont Corporation (NEM) or Alamos Gold (AGI). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Both Newmont Corporation and Alamos Gold have a Zacks Rank of # 2 (Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. However, value investors will care about much more than just this.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

NEM currently has a forward P/E ratio of 14.65, while AGI has a forward P/E of 25.73. We also note that NEM has a PEG ratio of 0.38. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. AGI currently has a PEG ratio of 0.88.

Another notable valuation metric for NEM is its P/B ratio of 1.74. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, AGI has a P/B of 2.76.

Based on these metrics and many more, NEM holds a Value grade of B, while AGI has a Value grade of C.

Both NEM and AGI are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that NEM is the superior value option right now.

Zacks Investment Research

DuPont de Nemours, Inc. DD registered earnings from continuing operations of $1.13 per share in the third quarter of 2024, up from earnings of 62 cents per share in the year-ago quarter. Barring one-time items, earnings came in at $1.18 per share in the reported quarter, topping the Zacks Consensus Estimate of $1.04.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

DuPont logged net sales of $3,192 million, marking a 4% year-over-year increase. It missed the Zacks Consensus Estimate of $3,199 million. Organic sales increased 3% in the quarter, as a 5% increase in volume more than offset a 2% decline in price. The rise in volume was driven by sustained growth in the electronics market and a return of year-over-year growth in water solutions. DD saw continued semiconductor demand recovery in the quarter driven by AI technology applications and higher demand in China.

DuPont de Nemours, Inc. Price, Consensus and EPS Surprise

DuPont de Nemours, Inc. price-consensus-eps-surprise-chart | DuPont de Nemours, Inc. Quote

DuPont’s Segment Highlights

The company's Electronics & Industrial segment reported net sales of $1,551 million in the quarter, a 13% year-over-year increase. It was below the consensus estimate of $1,553.2 million. Organic sales grew 10%, driven by an 11% rise in volume, which was modestly offset by a 1% decrease in price.

The Water & Protection unit recorded net sales of $1,382 million, a 2% decline from the previous year, missing the consensus estimate of $1,389.5 million. The decline was due to a 2% drop in price with volumes remaining flat year over year.

DD’s Financials

DuPont had cash and cash equivalents of $1,645 million at the end of the quarter, down around 9% sequentially. Long-term debt was $7,170 million, flat sequentially.

The company generated operating cash flow from continuing operations of $737 million in the third quarter.

DuPont’s Outlook

DuPont raised its projections for operating EBITDA and adjusted earnings per share. The company anticipates full-year 2024 net sales to be around $12,365 million. Operating EBITDA is now forecast to be roughly $3,125 million (up from the prior view of $3,060-$3,110 million) while adjusted earnings are projected to be around $3.90 per share for the year (up from $3.70-$3.80 expected earlier).

For the fourth quarter of 2024, DD forecasts net sales of around $3,070 million, operating EBITDA of roughly $790 million and adjusted earnings of around 98 cents per share. The guidance assumes sales and earnings growth for both segments. The company expects normal seasonal declines in electronics and construction markets, partly offset by continued recovery in water and medical packaging markets.

DD Stock’s Price Performance

DuPont’s shares have gained 17.7% in a year compared with the Zacks Chemicals Diversified industry’s 4.3% rise.