Franco-Nevada Earnings Miss Estimates in Q3, Shares Decline 11%

The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Kinross Gold (KGC) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Basic Materials sector should help us answer this question.

Kinross Gold is a member of the Basic Materials sector. This group includes 235 individual stocks and currently holds a Zacks Sector Rank of #12. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Kinross Gold is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for KGC's full-year earnings has moved 20.3% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

According to our latest data, KGC has moved about 56.2% on a year-to-date basis. In comparison, Basic Materials companies have returned an average of -2.1%. As we can see, Kinross Gold is performing better than its sector in the calendar year.

Rayonier Advanced Materials (RYAM) is another Basic Materials stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 146.4%.

In Rayonier Advanced Materials' case, the consensus EPS estimate for the current year increased 77.8% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Kinross Gold belongs to the Mining - Gold industry, a group that includes 38 individual stocks and currently sits at #21 in the Zacks Industry Rank. This group has gained an average of 14.3% so far this year, so KGC is performing better in this area.

On the other hand, Rayonier Advanced Materials belongs to the Paper and Related Products industry. This 11-stock industry is currently ranked #192. The industry has moved +40.7% year to date.

Going forward, investors interested in Basic Materials stocks should continue to pay close attention to Kinross Gold and Rayonier Advanced Materials as they could maintain their solid performance.

Zacks Investment Research

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company to watch right now is Barrick Gold (GOLD). GOLD is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 10.21 right now. For comparison, its industry sports an average P/E of 13.21. Over the past 52 weeks, GOLD's Forward P/E has been as high as 22.29 and as low as 10.19, with a median of 14.28.

We also note that GOLD holds a PEG ratio of 0.31. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. GOLD's industry currently sports an average PEG of 0.45. Over the last 12 months, GOLD's PEG has been as high as 1.56 and as low as 0.31, with a median of 0.98.

We should also highlight that GOLD has a P/B ratio of 1. 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. This stock's P/B looks attractive against its industry's average P/B of 1.71. Over the past 12 months, GOLD's P/B has been as high as 1.14 and as low as 0.77, with a median of 0.94.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. GOLD has a P/S ratio of 2.61. This compares to its industry's average P/S of 2.99.

Finally, we should also recognize that GOLD has a P/CF ratio of 9.21. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. GOLD's current P/CF looks attractive when compared to its industry's average P/CF of 16.69. Over the past 52 weeks, GOLD's P/CF has been as high as 15.14 and as low as 7.45, with a median of 8.95.

Kinross Gold (KGC) may be another strong Mining - Gold stock to add to your shortlist. KGC is a # 1 (Strong Buy) stock with a Value grade of A.

Shares of Kinross Gold currently holds a Forward P/E ratio of 12.71, and its PEG ratio is 0.43. In comparison, its industry sports average P/E and PEG ratios of 13.21 and 0.45.

Over the past year, KGC's P/E has been as high as 19, as low as 11.72, with a median of 14.17; its PEG ratio has been as high as 2.13, as low as 0.39, with a median of 0.98 during the same time period.

Kinross Gold also has a P/B ratio of 2.04 compared to its industry's price-to-book ratio of 1.71. Over the past year, its P/B ratio has been as high as 2.05, as low as 0.95, with a median of 1.39.

These are only a few of the key metrics included in Barrick Gold and Kinross Gold strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, GOLD and KGC look like an impressive value stock at the moment.

Zacks Investment Research

Resolute Mining CEO Terry Holohan, along with two other company executives have been detained by the military-led government in Mali.

What Happened: The executives traveled to Bamako, Mali's capital, for meetings with local mining and tax authorities to address concerns over the company's in-country practices.

Resolute asserts that these claims are unfounded and that all official processes have been followed, yet Holohan and the other executives were "unexpectedly detained" on November 8. The company confirmed the detention, stating that the executives are receiving support from U.K. and international consulates.

Why it Matters: The Malian military junta has been escalating its efforts to tighten control over foreign mining operations, as mining is a critical part of the economy.

The junta, which seized power in a 2020 coup, has been renegotiating existing contracts under a mining code introduced in 2023 that allows for an increase in state ownership in mining projects from 20% to 35%.

The government's approach has already led to similar incidents, such as the detention of four Barrick Gold employees in September. The detention was tied to allegations of financial misconduct amid discussions over environmental and regulatory commitments at Barrick's Loulo-Gounkoto mines. The junta has warned it might let the Loulo mine concession expire in 2026.

Resolute's Syama gold mine in Mali is one of the company's two primary assets, contributing nearly 60% of its total gold output in 2023.

The mine, in which the government holds a 20% stake, is a long-term project vital to Resolute's operations, with a second phase scheduled for 2025.

Despite adhering to all regulatory procedures, Resolute's commitment to maintaining favorable contract terms for Syama appears to have clashed with Mali's new policies.

"Resolute's utmost priority remains the safety and well-being of its employees," the company said, affirming its intention to continue discussions with authorities.

Resolute's situation points at escalating risks of operating in Mali. Other companies such as B2Gold, Allied Gold, and AngloGold Ashanti will now be on high alert.

Market Watch: Resolute's shares dropped 32.84% following the news, closing the day on the Australian Securities Exchange at A$0.45.

Read Next:

• Mineral Resources Confirms Founder's Departure Amid Tax Evasion Allegations, Moody's Cuts Outlook

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Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today:

Pitney Bowes Inc. PBI: This shipping and mailing company has seen the Zacks Consensus Estimate for its current year earnings increasing 8.6% over the last 60 days.

Pitney Bowes Inc. Price and Consensus

Pitney Bowes Inc. price-consensus-chart | Pitney Bowes Inc. Quote

Kinross Gold Corporation KGC: This gold mining company has seen the Zacks Consensus Estimate for its current year earnings increasing 17% over the last 60 days.

Kinross Gold Corporation Price and Consensus

Kinross Gold Corporation price-consensus-chart | Kinross Gold Corporation Quote

Rayonier Advanced Materials Inc. RYAM: This cellulose specialty company has seen the Zacks Consensus Estimate for its current year earnings increasing 77.8% over the last 60 days.

Rayonier Advanced Materials Inc. Price and Consensus

Rayonier Advanced Materials Inc. price-consensus-chart | Rayonier Advanced Materials Inc. Quote

Century Aluminum Company CENX: This aluminum manufacturing company has seen the Zacks Consensus Estimate for its current year earnings increasing 19.2% over the last 60 days.

Century Aluminum Company Price and Consensus

Century Aluminum Company price-consensus-chart | Century Aluminum Company Quote

AppLovin Corporation APP: This digital advertising platform provider has seen the Zacks Consensus Estimate for its current year earnings increasing 19.9% over the last 60 days.

AppLovin Corporation Price and Consensus

AppLovin Corporation price-consensus-chart | AppLovin Corporation Quote

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

Zacks Investment Research