Core Insights - DRDGOLD Ltd. experienced a significant improvement in gold recovery yield in Q1 FY2026, which positively impacted production and earnings despite a decrease in total ore throughput [1][5][10] Production and Operational Performance - The company processed approximately 6.481 metric tons of material, about 3% lower than the previous quarter, mainly due to weather disruptions and routine maintenance [2] - Gold production increased by 2% sequentially, totaling 38,291 ounces [2][10] - The yield improved to 0.184 grams per ton from 0.176 grams per ton, marking a 5% increase, allowing DRDGOLD to extract more gold per ton processed [3][10] Financial Performance - Revenues for Q1 FY2026 reached R2.25 billion (approximately $124.4 million), a 2% increase from the previous quarter, driven by higher gold prices and sales [5][10] - EBITDA rose by 1% to R1.09 billion (around $60.3 million), supported by strong gold prices and enhanced recovery efficiencies [5][10] Strategic Positioning - The yield improvement strengthens DRDGOLD's long-term position in the surface retreatment segment, emphasizing the importance of optimizing recovery efficiency for sustained profitability [6][10] Industry Comparison - AngloGold Ashanti Plc. reported a 21% year-over-year increase in gold production, driven by higher recovery rates and optimized plant performance [7] - Gold Fields Ltd. faced a 27% decrease in gold recovery yield, contributing to a 6% decline in gold production [8]

Core Viewpoint - The pre-market trading of gold stocks in the US saw a collective rise, driven by expectations of further interest rate cuts and ongoing trade tensions, leading to a significant increase in gold prices, which surpassed $4,210, marking a new historical high and a year-to-date increase of over 60% [1]. Group 1: Market Performance - Gold stocks such as Harmony Gold and Kinross Gold rose over 4%, while companies like Coeur Mining, DRDGOLD, and AngloGold Ashanti saw increases exceeding 3% [1]. - The pre-market performance of various gold stocks included notable gains: Harmony Gold at 4.97%, Kinross Gold at 2.20%, and AngloGold Ashanti at 3.20% [2]. Group 2: Gold Price Movement - Spot gold prices broke the $4,210 mark, achieving a new all-time high [1]. - Year-to-date, spot gold has increased by more than 60%, reflecting strong market demand and investor sentiment [1].

Gold Market Overview - Gold prices have increased nearly 51% year to date, reaching an all-time high of $3,976 per ounce on October 7 [1][10] - The demand for gold is rising as it is viewed as a "safe-haven" investment amid expectations of interest rate cuts by the Federal Reserve and economic uncertainties [2][4] Central Bank Activity - Central banks in emerging economies are actively purchasing gold to bolster their reserves due to rising global debt levels and geopolitical risks, particularly in the Middle East [3] - A global trend of cutting interest rates is beneficial for gold, as lower rates enhance the appeal of non-income-bearing assets like gold [4] Supply-Demand Dynamics - The gold mining industry is facing a supply-demand imbalance, with a scarcity of new gold deposits and lengthy exploration processes [6] - Increased use of gold in sectors such as energy, healthcare, and technology is expected to further drive demand [7] Investment Opportunities in Gold Mining Stocks - Companies with favorable Zacks Rank for investment include Agnico Eagle Mines Ltd. (AEM), DRDGOLD Ltd. (DRD), Alamos Gold Inc. (AGI), Gold Fields Ltd. (GFI), and U.S. Gold Corp. (USAU), all rated as Strong Buy [5][10] Company-Specific Insights Agnico Eagle Mines Ltd. (AEM) - Focused on growth through key projects and acquisitions, with expected revenue and earnings growth rates of 30.6% and 68.1% respectively for the current year [11][13] - The merger with Kirkland Lake Gold has positioned AEM as a leading senior gold producer [12] DRDGOLD Ltd. (DRD) - A medium-sized, unhedged gold producer with a focus on South Africa and Australasia, expected revenue and earnings growth rates of 35.2% and -0.7% respectively [14][15] Alamos Gold Inc. (AGI) - An intermediate gold producer with diversified operations in North America, expected revenue and earnings growth rates of 33.4% and 76.3% respectively [16] Gold Fields Ltd. (GFI) - Operates in multiple countries with a strong focus on gold production, expected revenue and earnings growth rates of 69.4% and over 100% respectively [17] U.S. Gold Corp. (USAU) - A gold exploration and development company with a focus on domestic properties, expected earnings growth rate of 46.9% for the current year [18]

Core Insights - U.S. stock markets are experiencing significant gains in 2025, with major indexes like the Dow, S&P 500, and Nasdaq Composite up 10.3%, 14.4%, and 18.2% year-to-date, respectively, nearing all-time highs [1][8] Stock Performance - A weak labor market has led to expectations that the Federal Reserve will continue to lower the benchmark lending rate throughout 2025, although the recent U.S. government shutdown may dampen investor enthusiasm [2] - Five stocks identified as having strong price momentum are Century Aluminum Co. (CENX), DRDGOLD Ltd. (DRD), Globalstar Inc. (GSAT), TAT Technologies Ltd. (TATT), and Sterling Infrastructure Inc. (STRL) [3][8] Stock Screening Criteria - Stocks must show a percentage change in price greater than zero over the last four weeks and greater than 10% over the last twelve weeks to indicate sustained momentum [5] - Stocks should have a Zacks Rank of 1 (Strong Buy) and an average broker rating of 1, indicating strong future performance expectations [6] - Stocks must be trading at a minimum price of $5 and be within 85% of their 52-week high to ensure they are strong performers [7] Individual Stock Highlights - **Century Aluminum Co. (CENX)**: Stock price increased by 35.2% in the last four weeks, with an expected earnings growth rate of 77.4% for the next year [10] - **DRDGOLD Ltd. (DRD)**: Stock price rose by 34.9% in the last four weeks, with an expected earnings growth rate of -0.7% for the current year [11] - **Globalstar Inc. (GSAT)**: Stock price climbed 34.9% in the last four weeks, with an expected earnings growth rate of 66.7% for the current year [14] - **TAT Technologies Ltd. (TATT)**: Stock price surged 24.9% in the last four weeks, with an expected earnings growth rate of 45% for the current year [16] - **Sterling Infrastructure Inc. (STRL)**: Stock price advanced 22.2% in the last four weeks, with an expected earnings growth rate of 56.9% for the current year [19]

Group 1 - The price of gold has reached a historic high, currently standing at $3,890 per ounce, leading to a pre-market rise in gold stocks in the US [1] - AngloGold shares increased by over 3%, while Harmony Gold and Kinross Gold saw gains of over 2% [1] - Other companies such as Pan American Silver and Fortuna Silver also experienced pre-market increases of over 1% [1] Group 2 - AngloGold's latest price is $70.33, with a market capitalization of $35.499 billion and a year-to-date increase of 216.85% [2] - DRDGOLD shares are priced at $27.60, with a market cap of $2.385 billion and a year-to-date increase of 226.89% [2] - Kinross Gold's latest price is $24.85, with a market cap of $30.287 billion and a year-to-date increase of 170.31% [2]

Core Insights - DRDGOLD (DRD) has significantly outperformed its peers in the Basic Materials sector, with a year-to-date gain of approximately 219.2% compared to the sector average of 23.6% [4] - The Zacks Consensus Estimate for DRD's full-year earnings has increased by 57.8% in the past quarter, indicating improved analyst sentiment and a stronger earnings outlook [4] - DRDGOLD holds a Zacks Rank of 1 (Strong Buy), suggesting it has favorable characteristics for outperforming the market in the near term [3] Company Performance - DRDGOLD is part of the Mining - Gold industry, which has seen an average gain of 119.1% this year, indicating that DRD is performing better than the industry average [6] - In comparison, First Quantum Minerals (FQVLF), another outperforming stock in the Basic Materials sector, has returned 75.7% year-to-date, with a Zacks Rank of 2 (Buy) [5][6] Sector Overview - The Basic Materials sector includes 236 individual stocks and currently holds a Zacks Sector Rank of 13 out of 16 groups, reflecting its relative performance [2] - The Mining - Non Ferrous industry, where First Quantum Minerals belongs, has a lower ranking (89) and has only gained 15.8% this year, highlighting the stronger performance of the Mining - Gold industry [6]

Core Viewpoint - H.C. Wainwright raised the price target for DRDGOLD Ltd. to $30.50 from $18.75, maintaining a Buy rating due to strong investor interest in the Vision 2028 Initiative and favorable conditions from high gold prices [1] Group 1: Vision 2028 Initiative - The Vision 2028 Initiative includes plans for expanding gold operations with approximately R7.8 billion ($449.7 million) in capital expenditures [2] - Key projects under this initiative involve the expansion of the Ergo Processing Plant, the integration of solar power and battery storage for enhanced efficiency, and the Knights Tailings Reclamation project aimed at recovering gold from historical deposits [2] Group 2: Far West Gold Recoveries (FWGR) - The Vision 2028 plan for FWGR aims to more than double the processing capacity of the Driefontein 2 plant to 1.2 million tonnes per month [3] - A new regional tailings storage facility is also planned to support the increased throughput, which management believes will extend operational life and enhance output [3]

Group 1 - The company is responsible for the development of all transcript-related projects [1] - The company publishes thousands of quarterly earnings calls per quarter and is expanding its coverage [1] - The purpose of the profile is to share new transcript-related developments with readers [1]

Market Overview - U.S. stock markets are experiencing a continued upward trend in 2025, with major indexes like the Dow, S&P 500, and Nasdaq Composite near all-time highs [1] - Expectations for the Federal Reserve's first interest rate cut in 2025 have surged, with a 100% probability of a 25-basis-point cut anticipated in the upcoming September FOMC meeting [2] Stock Performance - Several stocks have shown significant price strength, particularly those on a bull run, indicating a high chance of maintaining momentum [2] - Five highlighted stocks include DRDGOLD Ltd. (DRD), Daktronics Inc. (DAKT), NCS Multistage Holdings Inc. (NCSM), Build-A-Bear Workshop Inc. (BBW), and Vishay Precision Group Inc. (VPG) [3] Stock Screening Criteria - Stocks must show a percentage change in price greater than zero over the last four weeks, indicating recent upward movement [5] - A percentage change in price greater than 10% over the last 12 weeks is required to ensure sustained momentum [5] - Stocks must have a Zacks Rank of 1 (Strong Buy) and an average broker rating of 1, indicating strong future performance expectations [6] - Current stock prices must be above $5 and trading near their 52-week highs, with a price/52-week high-low range greater than 85% [7] Individual Stock Highlights - **DRDGOLD Ltd. (DRD)**: Stock price increased by 49.9% in four weeks, with an expected earnings growth rate of 13.3% for the current year and an 80% improvement in earnings estimates [8][9] - **Daktronics Inc. (DAKT)**: Stock price rose by 39.1% in four weeks, with an expected earnings growth rate of 28.2% and a 6.9% increase in earnings forecasts [8][11] - **NCS Multistage Holdings Inc. (NCSM)**: Stock price climbed 38.4% in four weeks, with an expected earnings growth rate of 6.7% and a 62% improvement in earnings estimates [8][13] - **Build-A-Bear Workshop Inc. (BBW)**: Stock price surged 33.1% in four weeks, with an expected earnings growth rate of 6.9% and a 3.9% increase in earnings estimates [8][15] - **Vishay Precision Group Inc. (VPG)**: Stock price rallied 14.4% in four weeks, with an expected earnings growth rate of -27.4% and a 5.8% improvement in earnings estimates [8][18]

Core Viewpoint - The article emphasizes the importance of identifying and sustaining trends in short-term investing, highlighting that sound fundamentals and positive earnings revisions are crucial for maintaining stock momentum [1]. Group 1: Trend Analysis - The "Recent Price Strength" screen is a useful tool for investors to identify stocks that are currently trending upwards, supported by strong fundamentals and trading near their 52-week high [2]. - DRDGOLD (DRD) has shown a significant price increase of 62.2% over the past 12 weeks, indicating strong investor interest and potential upside [3]. - A recent price increase of 53.5% over the last four weeks further confirms that the upward trend for DRD is still intact [4]. Group 2: Fundamental Strength - DRD holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, which are critical for short-term price movements [5]. - The Zacks Rank system has a proven track record, with Rank 1 stocks averaging an annual return of +25% since 1988, indicating strong potential for DRD [6]. - The Average Broker Recommendation for DRD is also 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [6]. Group 3: Investment Opportunities - In addition to DRD, there are other stocks that meet the criteria of the "Recent Price Strength" screen, suggesting further investment opportunities for those looking to capitalize on current market trends [7]. - The article encourages investors to explore over 45 Zacks Premium Screens tailored to different investing styles, which can help identify potential winning stocks [7].