Why Mark Minervini may look into KINROSS GOLD CORP (NYSE:KGC)

In this article we will dive into KINROSS GOLD CORP (NYSE:KGC) as a possible candidate for growth investing. Investors should always do their own research, but we noticed KINROSS GOLD CORP showing up in our Minervini growth screen, which makes it worth to investigate a bit more.

Checking the Minervini Trend Template.

The Minervini Trend Template is a set of technical criteria designed to identify stocks in strong uptrends. We can check all the boxes for KGC:

• ✔ Relative Strength is above 70.
• ✔ Current price is within 25% of it's 52-week high.
• ✔ Current price is at least 30% above it's 52-week low.
• ✔ The current price is above the 50-, 150- and 200-day SMA price line.
• ✔ The SMA(200) is trending upwards.
• ✔ The SMA(150) is above the SMA(200)
• ✔ The SMA(50) is above the SMA(150) and the SMA(200)

Unpacking KGC's High Growth Momentum Rating

ChartMill assigns a High Growth Momentum Rating (HGM) to every stock. This score ranges from 0 to 10 and evaluates the different growth and profitability aspects, including accelleration, surprises and revisions. KGC scores a 4 out of 10:

Earnings Momentum

• KGC has shown positive momentum in its earnings per share (EPS) on a quarter-to-quarter (Q2Q) basis, with a 81.82% increase. This reflects the company's successful execution of its business strategies and its commitment to delivering improved financial results.
• KGC has experienced 54.2% growth in EPS over a 12 month period, demonstrating its ability to generate sustained and positive earnings momentum.
• KGC has experienced 26.9% q2q revenue growth, indicating a significant sales increase.
• With impressive 1-year revenue growth of 21.44%, KGC showcases its ability to generate increased sales and revenue. This growth highlights the company's strong customer demand and its effective business strategies.
• KGC has surpassed EPS estimates 3 times in the last 4 quarters, reflecting its strong financial performance and effective management. This trend suggests the company's ability to generate positive earnings surprises and drive shareholder value.

Financial Strength & Profitability

• KGC has shown positive growth in its operating margin over the past year, indicating improved operational efficiency. This growth highlights the company's ability to effectively manage costs and maximize profitability.
• With a favorable trend in its profit margin over the past year, KGC demonstrates its ability to enhance profitability through efficient operations.
• KGC has experienced notable growth in its free cash flow (FCF) over the past year, signaling improved cash generation and strong financial performance. This growth suggests the company's ability to generate excess cash for reinvestment or shareholder returns.
• KGC showcases a robust Return on Equity (ROE) of 13.83%, indicating its ability to generate favorable returns for shareholders. This metric underscores the company's efficiency in utilizing its equity capital to generate profits.
• With a Debt/Equity ratio of 0.18, KGC demonstrates prudent financial management.

Institutional Confidence & Market Strength

• With institutional shareholders at 68.64%, KGC demonstrates a healthy ownership distribution. This reflects a mix of institutional and individual investors, creating a market environment that may foster increased trading activity and price discovery.
• KGC has maintained a healthy Relative Strength (RS) over the analyzed period, with a current 97.44 rating. This demonstrates the stock's ability to outperform its peers and indicates its competitive positioning.

How do we evaluate the setup for KGC?

ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. KGC currently has a 6 as setup rating:

KGC has an excellent technical rating, but the quality of the setup is only medium at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first.

Our latest full technical report of KGC contains the most current technical analsysis.

Concluding

It looks like KINROSS GOLD CORP meets the Minervini criteria. More high growth momentum breakout stocks can be found in our High Growth Momentum + Trend Template screen.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.