Buy These 5 Value Stocks Boasting High Earnings Yield Right Away

Mali's military government is demanding a $162 million tax settlement from Australia's Resolute Mining following the detention of its CEO, Terry Holohan, during a visit to the country.

Holohan was detained in Bamako, Mali's capital, along with two colleagues after attending meetings with tax and mining authorities.

This action has escalated tensions between the country's military junta and foreign mining companies, a crucial source of tax revenue.

After shares fell more than 40%, the Australian Securities Exchange halted trading, pending further news from the company, per Bloomberg.

Mali, Africa's third-largest gold producer, significantly contributes to the global gold supply, attracting several prominent international mining companies. Alongside Resolute, which operates the Syama mine, other notable miners active in Mali include Barrick Gold , operator of the Loulo-Gounkoto complex, as well as Allied Gold Corp. and B2Gold Corp., which manage the Sadiola and Fekola mines.

Resolute reported producing approximately 331,000 ounces of gold across its African sites in 2023, with Syama as its flagship Malian project. Still, the company's fiscal position at the end of the last quarter included a net cash reserve of $146 million – which is less than what the junta demands.

Resolute's contract for the Syama, set to run through 2029, previously granted favorable operational terms. However, the junta, which has governed Mali since 2020, recently began pressuring mining companies to renegotiate economic terms in a bid to increase national revenue from resources.

This trend coincides with a surge in the global gold market, with prices rising by 28% year-to-date. In a recent statement, Resolute called the Malian government's tax claims "unsubstantiated" and expressed its intention to work with authorities toward a resolution.

The junta's demands on Resolute are not isolated. Barrick Gold has also come under scrutiny, with the government seeking $500 million in funds that it claims are owed.

Despite the tensions, Barrick CEO Mark Bristow indicated that his company is engaged in discussions with Malian authorities to achieve a "mutually acceptable outcome." He noted that the firm paid out $85 million in the context of ongoing negotiations.

Barrick's Loulo-Gounkoto complex remains one of its most productive assets, yielding 683,000 ounces in 2023 from its total production of 4.05 million ounces. A disruption of such Tier 1 operation would have a notable impact on the company and the broader market.

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Shares of Royal Gold, Inc. RGLD have dipped 5% since it reported third-quarter 2024 results on Nov. 6 on a muted guidance despite record revenues and improved earnings.

RGLD reported adjusted earnings per share (EPS) of $1.47 in third-quarter 2024, beating the Zacks Consensus Estimate of $1.34. The company had reported an EPS of 76 cents in the year-ago quarter.

Including one-time items, the company reported an EPS of $1.46 compared with the prior-year quarter’s 75 cents.

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

RGLD generated record revenues of $194 million, up 39.8% year over year. The upside was driven by higher average metal prices; gold sales from Mount Milligan; gold and silver sales from Pueblo Viejo; and gold, silver, zinc and lead production from Peñasquito. However, these factors were offset by lower gold sales from Andacollo, production from the Cortez Legacy Zone and silver sales from Khoemacau.

RGLD expects silver sales to fall slightly below the low end of the projection range due to decreased sales from Pueblo Viejo. Gold sales, which are the company's most important revenue driver, are expected to be at or below the mid-point of the company’s guidance range.

Stream revenues were $133 million and royalty revenues were $61 million in the September-end quarter. Stream revenues increased 34.4% year over year and royalty revenues rose 53.5%.

Royal Gold, Inc. Price, Consensus and EPS Surprise

Royal Gold, Inc. price-consensus-eps-surprise-chart | Royal Gold, Inc. Quote

The company’s cost of sales was $27 million in the third quarter compared with the prior-year quarter’s $21 million.

General and administrative expenses amounted to $10 million, up 2% year over year. The adjusted EBITDA was $156 million in the reported quarter, up 45.9% year over year. The adjusted EBITDA margin was 81% compared with the prior-year quarter’s 78%.

RGLD’s Q3 Cash Position

Net cash from operating activities was $137 million in the third quarter compared with the prior-year quarter’s $98 million. Royal Gold ended the quarter with cash and cash equivalents of around $128 million compared with $104 million at the end of 2023.

Royal Gold’s 2024 Outlook

The company expects silver sales to be below 3.2-3.8 million ounces. Total gold sales for 2024 are expected to be 215,000-230,000 ounces.

RGLD’s Price Performance

In the past year, shares of Royal Gold have gained 18.3% compared with the industry’s growth of 21.6%.

Royal Gold’s Zacks Rank

RGLD currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

RGLD’s Peer Performances in Q3

Agnico Eagle Mines Limited AEM reported third-quarter 2024 adjusted earnings of $1.14 per share, up from 44 cents in the year-ago quarter. The bottom line topped the Zacks Consensus Estimate of 98 cents.

AEM generated revenues of $2.16 billion, up 31.2% year over year. The top line surpassed the Zacks Consensus Estimate of $1.83 billion.

Barrick Gold Corporation GOLD posted third-quarter 2024 adjusted earnings per share of 31 cents. The figure missed the Zacks Consensus Estimate of 33 cents.

Barrick Gold recorded total revenues of $3,368 million, up 17.7% year over year. Total gold production was 943,000 ounces in the quarter, down 9.2% year over year.

Kinross Gold Corporation’s KGC third-quarter 2024 adjusted earnings per share were 24 cents compared with 12 cents in the prior-year quarter. It beat the Zacks Consensus Estimate of 18 cents.

KGC’s revenues rose 29.9% year over year to $1,432 million, surpassing the Zacks Consensus Estimate of $1,186.7 million. The company benefited from higher average realized gold prices.

Zacks Investment Research

U.S.-listed Chinese stocks Alibaba Group Holding. , JD.com, Inc. , Baidu, Inc. , NIO Inc. , Li Auto Inc. , and XPeng Inc. recorded some redemption on Wednesday premarket after a selloff triggered by geopolitical tensions perpetrated by Donald Trump’s U.S. presidential election victory and lackluster domestic stimulus.

However, the stocks gave up the premarket gains in Wednesday’s regular trading session.

Alibaba and JD.com have concluded their Singles’ Day shopping events, reporting solid sales figures as domestic consumer demand increases. Both e-commerce leaders highlighted increased activity during the world’s largest annual shopping festival, signaling a potential recovery in Chinese retail spending, SCMP reports.

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Both platforms indicated significant growth across key metrics, reflecting increased buyer engagement and transaction volumes.

Alibaba’s domestic platforms, Taobao and Tmall, noted record-high participation, with 45 major brands such as Apple Inc , Xiaomi Corp , and Nike Inc each generating sales exceeding 1 billion yuan ($139 million).

Additionally, over 580 brands surpassed the 100-million-yuan GMV mark, a substantial increase from the previous year.

JD.com reported robust growth, with transaction volumes increasing fivefold compared to last year’s figures for over 17,000 brands on its platform.

Around 30,000 small and medium-sized merchants also experienced a 200% year-over-year surge in sales, underlining the broader market recovery.

A recent Fudan University-affiliated think tank report told SCMP that Alibaba led the market with a 38% share during the Singles’ Day event. JD.com secured a 20% share, while ByteDance’s Douyin captured 13%, and Pinduoduo, owned by PDD Holdings Inc , held 10%.

Analysys, a Chinese consultancy firm, told SCMP that Taobao and Tmall accounted for nearly half of all sales across major platforms. Douyin stood out with a 19% increase in GMV, marking the highest growth among competitors.

On the EV front, the European Union sees minimal progress in ongoing talks with China to find an alternative to electric vehicle tariffs, the Economic Times cites familiar sources. Technical discussions will continue following meetings in Beijing, where both sides have claimed some progress.

However, prospects for a swift agreement remain low, as China has yet to meet the EU’s stringent demands for enforceable measures equivalent to the recent anti-subsidy tariffs, the sources added.

Negotiations have focused on setting up a communication channel and preventing cross-compensation, where other product sales, like hybrid vehicles, could offset price limits on EV imports.

Chinese EV stocks Nio, Li Auto, and Xpeng are trading higher on Wednesday in the premarket session, only to give up gains in the regular trading session.

Meanwhile, President-elect Donald Trump’s likely picks of Sen. Marco Rubio as Secretary of State and Rep. Mike Waltz as National Security Adviser suggest a stricter stance on China, the Japan Times reports.

Rubio, known for his strong anti-China rhetoric, has backed a harder line against Beijing.

Waltz shares Rubio’s hawkish approach, focusing on countering China’s influence in the Indo-Pacific. He has pushed to reduce U.S. reliance on Chinese imports and enhance American shipbuilding capacity through allied cooperation.

Price Actions: At the last check on Wednesday, BABA stock is down 0.22% to $91.58. JD is down 0.85%, XPEV is down 2.82%.

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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Alibaba Group Holding Limited BABA is scheduled to report second-quarter fiscal 2025 results on Nov. 15.

For the fiscal second quarter, the Zacks Consensus Estimate for revenues is pegged at $33.47 billion, suggesting an 8.63% rise from the year-ago quarter’s reported figure.

The Zacks Consensus Estimate for earnings is pinned at $2.26 per share, indicating an increase of 5.61% from the prior-year quarter’s reported figure. The figure has moved north by 8.1% over the past 30 days.

Alibaba has a mixed earnings surprise history. In the last reported quarter, the company delivered an earnings surprise of 2.73%. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed the same once, the average surprise being 3.71%.

Alibaba Group Holding Limited Price and EPS Surprise

Alibaba Group Holding Limited price-eps-surprise | Alibaba Group Holding Limited Quote

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Alibaba this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

BABA has an Earnings ESP of 0.00% and sports a Zacks Rank #1 at present.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors to Focus on Ahead of Q2 Results

Alibaba's International Digital Commerce Group appears poised for strong performance, driven by robust momentum across its key platforms. The company's overseas e-commerce operations, particularly AliExpress, Trendyol and Alibaba.com, are likely to have benefited from strategic market investments and enhanced brand recognition.

The integration of AI technology has significantly improved the user experience through advanced features like cross-platform listings, multilingual search capabilities and personalized recommendations. This technological advancement, coupled with the AI Business Assistant, has strengthened Alibaba's relationships with SMEs globally.

The company's B2B cross-border trade initiatives show promising developments. The Alibaba Guaranteed platform has gained traction by simplifying international trade operations for SMEs through improved supply-chain reliability. Additionally, the introduction of Logistics Marketplace, an affordable logistics solution targeting U.S.-based SMEs, is likely to have contributed positively to the company's international commerce metrics.

In the domestic market, Alibaba's China commerce retail business, anchored by Taobao and Tmall Group, demonstrates resilience through strategic investments in price competitiveness and enhanced user experience. A notable development is the "Star Cube Plan," a partnership between Taobao and Tmall Group with Douyin, leveraging Alimama and Xingtu for digital marketing. This initiative, aimed at converting Douyin users into active customers, is expected to have boosted platform traffic, although persistent macroeconomic challenges in China might have partially offset these gains.

The company's logistics and cloud segments present mixed indicators. The Cainiao Smart Logistics Network benefits from strong domestic consumer logistics services and cross-border fulfillment solutions. While Alibaba Cloud maintains momentum in key sectors like financial services, education and automotive industries, its aggressive international pricing strategy, including up to 59% price reductions across five major categories for customers outside mainland China, might have impacted revenues despite potentially expanding market share.

However, intense competition from global cloud leaders like Amazon AMZN, Microsoft and Google continues to challenge Alibaba's cloud expansion efforts.

Price Performance & Valuation

Alibaba’s shares have gained 18.4% on a year-to-date basis, underperforming the industry, the Zacks Retail-Wholesale sector and the S&P 500 index’s return of 33.4%, 25.4% and 26.3%, respectively.

Alibaba has underperformed its peer JD.com JD, which returned 25% while outperforming PDD Holdings PDD, which lost 22.2% year to date, respectively.

Year-to-Date Price Performance

It is also important to consider whether the stock's current valuation accurately reflects the company's long-term growth potential and ability to navigate the competitive landscape. Currently, BABA is trading at a discount with a forward 12-month P/S of 1.49X compared with the industry’s 1.8X.

BABA’s P/S F12M Ratio Depicts Discounted Valuation

Investment Thesis

Alibaba presents a compelling investment opportunity ahead of its second-quarter fiscal 2025 earnings, underpinned by robust international commerce expansion through AliExpress and Trendyol, enhanced by AI integration and strengthened SME relationships. The company's domestic e-commerce business benefits from strategic partnerships, notably the Douyin collaboration, while its logistics segment shows promising growth through Cainiao's expanding services. Alibaba Cloud's aggressive pricing strategy and strong sector-specific momentum, particularly in the financial services and automotive industries, position it for potential market share gains. Despite macroeconomic headwinds in China, the company's diversified revenue streams and strategic initiatives across multiple segments support a positive growth trajectory.

Conclusion

Ahead of Alibaba's second-quarter fiscal 2025 earnings report, investors should consider establishing positions given the company's compelling growth catalysts across international commerce, cloud services and logistics segments. The strategic integration of AI technology, expanding global footprint through platforms like AliExpress and Trendyol, and aggressive cloud pricing initiatives demonstrate Alibaba's commitment to market share expansion and revenue diversification. Despite Chinese macroeconomic challenges, the company's robust ecosystem development, strategic partnerships, including the Douyin collaboration, and focus on SME relationships position it favorably for sustained growth, making current price levels an attractive entry point for long-term investors.

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