The Zacks Mining – Gold industry is part of the Basic Materials sector, which is expected to see a 7.5% decline in earnings despite 2.8% higher revenues in the second quarter. Gold miners like Barrick, Franco-Nevada, and Integra Resources are set to beat earnings estimates due to higher gold prices and cost-cutting efforts.
Gold prices have surged 29% this year due to global trade war concerns, hitting a record high of $3,500 per ounce. Prices closed the second quarter above $3,300 per ounce, rising nearly 6%. Higher gold prices are expected to support gold miners in the second quarter, despite inflationary pressures on mining costs.
Despite higher mining costs, gold miners are focusing on reducing operational expenses, improving efficiency, and optimizing assets. Companies like Barrick, Franco-Nevada, and Integra Resources are expected to maintain margins in the second quarter through cost-saving measures and high gold prices.
To pick winning gold mining stocks, look for companies with a favorable Zacks Rank (1, 2, or 3) and a positive Earnings ESP. Barrick, with an Earnings ESP of +1.14% and Zacks Rank #1, is expected to report positive earnings on August 11. Franco-Nevada and Integra Resources also have strong potential for positive earnings surprises this earnings season.
Integra Resources, with an Earnings ESP of +4.76% and Zacks Rank #3, is set to report on August 13. The company is expected to benefit from strong production at the Florida Canyon mine, contributing to robust cash flow generation in the second quarter. Despite past earnings misses, Integra Resources is positioned for a positive surprise this time.
For investors looking to capitalize on quantum computing and AI advancements, now is the time to position your portfolio for potential gains. A special report on the quantum leap in computing power outlines the stocks that could lead in this technological revolution. Access the report for free to discover the investment opportunities in this rapidly evolving sector.
Read more at Nasdaq: 3 Gold Mining Stocks Set to Pull Off a Beat This Earnings Season