Company Overview - Harmony Gold is currently ranked 1 (Strong Buy) in the Zacks Rank system, indicating strong potential for outperforming the market in the near term [3] - The company has seen a significant increase in its full-year earnings estimate, which has risen by 43.9% over the past quarter, reflecting improved analyst sentiment [4] Performance Metrics - Year-to-date, Harmony Gold has gained approximately 83.1%, significantly outperforming the Basic Materials sector, which has returned an average of 15.8% [4] - Within the Mining - Gold industry, Harmony Gold ranks 12 in the Zacks Industry Rank, with the industry itself averaging a gain of 58.7% this year, indicating that Harmony Gold is performing better than its peers [6] Comparative Analysis - Another stock in the Basic Materials sector, Novozymes A/S, has a year-to-date return of 22.7% and also holds a Zacks Rank of 1 (Strong Buy) [5] - Novozymes A/S belongs to the Chemical - Specialty industry, which is currently ranked 89, with an average year-to-date gain of 5.5%, showing a stark contrast to Harmony Gold's performance [6] Sector Context - The Basic Materials sector consists of 238 individual stocks and is ranked 10 in the Zacks Sector Rank, which evaluates sectors based on the average Zacks Rank of individual companies [2]

Core Viewpoint - Harmony Gold Mining Co. Ltd. (HMY) is focusing on long-term growth through the execution of two key development projects: the Wafi-Golpu copper-gold project in Papua New Guinea and the Eva Copper project in Australia [1]. Group 1: Wafi-Golpu Project - The Wafi-Golpu project is a significant asset for HMY, with an estimated gold reserve of 13 million ounces, making it one of the largest copper-gold block cave projects globally [2]. - HMY is currently negotiating with its joint venture partner, Newmont Corporation, and the PNG Government regarding the Mining Development Contract necessary for a Special Mining Lease, with permitting on track [2]. Group 2: Eva Copper Project - The Eva Copper project in Australia is considered low-risk and adds to HMY's global copper-gold footprint, aligning with its goal of becoming a low-cost mining company [3]. - HMY acquired Eva Copper in 2022, and the project is expected to produce between 55,000 to 60,000 tons of copper annually, with a feasibility study update currently in progress [3]. Group 3: Strategic Diversification - HMY's strategy includes diversifying beyond its South African gold operations, with a focus on the Wafi-Golpu and Eva Copper projects to drive transformative growth [4]. - The paired focus on these projects positions HMY uniquely in the market, enhancing its growth potential [4]. Group 4: Market Performance and Valuation - HMY shares have increased by 64.9% over the past year, outperforming the Zacks Mining – Gold industry, which rose by 33.4% [7]. - The company is currently trading at a forward 12-month earnings multiple of 5.26, which is approximately 56.3% lower than the industry average of 12.04 [9]. - The Zacks Consensus Estimate for HMY's fiscal 2025 earnings indicates a year-over-year growth of 190.8%, with EPS estimates trending higher over the past 60 days [10].

Core Insights - Harmony Gold Mining Company Limited (HMY) shares have surged 75.4% year-to-date, outperforming the Zacks Mining – Gold industry's growth of 53% and the S&P 500's increase of 5.9% [2] - The stock's performance is attributed to rising gold prices and strong operational results, with peers Gold Fields Limited (GFI) and DRDGOLD Limited (DRD) gaining 83.6% and 59% respectively [2] Performance Metrics - HMY's stock has consistently traded above its 200-day simple moving average (SMA) since January 17, 2025, indicating a bullish trend, despite currently being below the 50-day SMA [5] - The stock trades at a forward price/earnings ratio of 5.05X, approximately 60% below the industry average, highlighting its value appeal [7][16] Growth Drivers - HMY is South Africa's largest gold producer, with an output of approximately 1.56 million ounces in fiscal 2024, supported by projects like Wafi-Golpu and Eva Copper [10] - The Wafi-Golpu project is expected to significantly enhance HMY's reserves, with an estimated 13 million ounces of gold, and is currently in negotiations for a Mining Development Contract [11] - The Eva Copper project, acquired in 2022, is anticipated to produce 55,000-60,000 tons of copper annually and is supported by a conditional grant from the Queensland government [12] Market Conditions - Gold prices have increased by roughly 28% this year, driven by global trade tensions and central bank purchases, with current prices hovering above $3,300 per ounce [13] - HMY reported a 30% increase in average gold prices received, reaching $2,497 per ounce for the nine months ending March 31, 2025, which is expected to enhance profitability [14] Financial Health - HMY's net cash rose approximately 53% to $592 million by the end of Q3 fiscal 2025, indicating strong financial health [15] - The company has a dividend policy to distribute 20% of net free cash to shareholders, with a current dividend yield of 1.3% and a five-year annualized growth rate of about 19.4% [15] Valuation and Earnings Outlook - HMY's stock is considered attractive from a valuation perspective, trading at a significant discount compared to its peers [16] - Earnings estimates for fiscal 2025 have been revised upward over the past 60 days, indicating positive market sentiment [19] Investment Recommendation - The combination of key development projects, favorable gold prices, solid financials, and attractive valuation positions HMY as a strong investment opportunity [21]

Core Insights - Harmony Gold Mining Co. Ltd. (HMY) experienced a 24% increase in all-in-sustaining costs (AISC) in Q3 FY25, with total cash costs rising 22% year over year, indicating pressure on margins due to higher labor and electricity costs [1][6]. Cost Structure - Labor and electricity are the largest components of Harmony's cost structure, contributing significantly to the overall increase in costs [1][6]. - Electricity costs rose by 21% in fiscal 2024 due to higher tariffs from Eskom, and the company is implementing energy-saving initiatives and a renewable energy program, but relief from high electricity costs is not expected in the near term [2]. Peer Comparison - AngloGold Ashanti plc reported a 1% year-over-year increase in AISC to $1,640 per ounce, with managed operations seeing a 2% decline in AISC, while non-managed joint ventures experienced a 37% surge [3]. - Gold Fields Limited reported a 7% year-over-year decline in AISC to $1,625 per ounce, with expectations for AISC in the range of $1,500-$1,650 per ounce for FY25 [4]. Stock Performance and Valuation - HMY shares have increased by 78.1% year to date, outperforming the Zacks Mining – Gold industry, which rose by 53% [5][6]. - The Zacks Consensus Estimate for HMY's fiscal 2025 earnings suggests a year-over-year increase of 190.8%, with EPS estimates trending higher over the past 60 days [7]. - HMY is trading at a forward 12-month earnings multiple of 5.13, representing a 59.4% discount to the industry average of 12.62X, and holds a Value Score of B [8].

Group 1 - Guolian Minsheng (01456) expects a net profit of RMB 1.129 billion for the first half of 2025, representing a year-on-year increase of approximately 1183% [1] - NIO-SW (09866) saw a rise of over 10% as its sub-brand, Lido, officially launched pre-sales for its new model L90, priced starting at RMB 279,900, which is competitive against similar models [1] - China CNR (01766) rose over 7% following a profit warning, with the rail transit equipment industry showing high demand and Q2 performance exceeding expectations [1] Group 2 - Coal stocks experienced a broad increase, with companies like China Qinfa (00866) and China Shenhua (01088) rising over 4%, driven by strong coal prices amid high temperatures [1] - Zijin Mining (02899) saw a rise of 1.5%, with expected net profit growth of about 54% year-on-year for the first half of the year, although short-term impacts from copper tariffs are anticipated [1] Group 3 - WanGuo Data-SW (09698) increased over 6% after its REIT completed offline inquiries with a subscription multiple of 166 times, indicating significant valuation potential [2] - Hengrui Medicine (01276) rose over 4%, reaching a new high, with expectations that its performance and business development will act as key catalysts [2] - China Shipbuilding Defense (00317) increased over 5% as the merger of two shipbuilding companies approaches completion, with Q2 performance exceeding expectations [2] Group 4 - Bitcoin-related stocks saw significant gains, with Bit Origin (BTOG.US) rising 51.72% and SharpLink Gaming (SBET.US) increasing 17.15%, driven by a surge in Bitcoin prices [3] - Gold stocks strengthened amid geopolitical tensions, with Gold ETF (GLD.US) rising 0.96% and Barrick Mining (B.US) increasing 0.71% [3] Group 5 - British Petroleum (BP.US) rose 3.55% as the company anticipates an increase in Q2 oil production and strong trading performance [7] - Huami Technology (ZEPP.US) surged over 69%, projecting a 30% revenue growth for Q2, marking its first growth in three years [7]

Company Performance - Harmony Gold (HMY) closed at $14.62, reflecting a +1.67% change from the previous day's closing price, outperforming the S&P 500's daily loss of 0.33% [1] - The stock has decreased by 3.75% over the past month, underperforming the Basic Materials sector's gain of 1.87% and the S&P 500's gain of 4.07% [1] Earnings Estimates - The upcoming earnings release is anticipated, with Zacks Consensus Estimates projecting earnings of $2.85 per share and revenue of $0 million, indicating a +190.82% change in earnings from the previous year [2] - Recent estimate revisions are crucial as they reflect near-term business trends and analyst optimism regarding profitability [3] Analyst Ratings - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently rates Harmony Gold at 1 (Strong Buy), with a historical average annual return of +25% for stocks rated 1 since 1988 [5] - Over the past month, the Zacks Consensus EPS estimate for Harmony Gold has increased by 17.77% [5] Valuation Metrics - Harmony Gold's Forward P/E ratio is 5.05, which is a discount compared to the industry average Forward P/E of 13.04 [6] - The company has a PEG ratio of 0.09, significantly lower than the Mining - Gold industry's average PEG ratio of 0.55 [6] Industry Context - The Mining - Gold industry is part of the Basic Materials sector and holds a Zacks Industry Rank of 23, placing it in the top 10% of over 250 industries [7] - Strong individual industry groups, as measured by the Zacks Industry Rank, tend to outperform weaker groups by a factor of 2 to 1 [7]

Key Points - The article highlights significant stock movements in the Hong Kong and US markets, with various companies experiencing notable gains and losses due to recent developments and announcements [1][2][3][4][5] Hong Kong Market Highlights - China Rare Earth Holdings (03788) surged nearly 20%, with a year-to-date increase of 320%, as the company proposed a spin-off of its gold segment for independent listing on the Hong Kong Stock Exchange [1] - Innovent Biologics (09969) rose nearly 4% after announcing the clinical approval of its new ADC innovative drug ICP-B794 [1] - North Sea Kangcheng - B (01228) increased over 50%, with its stock price doubling in three days, marking it as a rare disease stock in the Hong Kong market [1] - Hong Kong Travel (00308) saw a rise of over 24%, achieving a year-to-date stock price doubling, driven by market speculation on stablecoin cross-border payment scenarios [1] - CSPC Pharmaceutical Group (01093) gained nearly 3% after receiving drug registration approval for Mesalazine enteric-coated tablets, enhancing its product line in the immune system treatment sector [1] - Ruian Real Estate (00272) rose over 4%, with a cumulative contract property sales amount for the first six months increasing by 457% year-on-year [1] - Cornerstone Pharmaceuticals - B (02616) increased over 3%, planning to raise HKD 467 million for clinical research on CS2009 [1] - Q Technology (01478) rose over 7%, with mobile camera module sales of 32.648 million units in June, a year-on-year increase of 1.5% [1] - Dekang Agriculture and Animal Husbandry (02419) increased by 6%, with a new cycle logic continuing to strengthen, and Tianfeng Securities set a target price of HKD 154 [1] - Contemporary Amperex Technology (03750) rose over 3%, reaching a new high since its listing, following a deepened strategic cooperation agreement with Geely Automobile [2] - Gaming stocks continued to rise, with Wynn Macau (01128) up 6.49%, New World Development (00200) up 6.15%, and others showing similar gains [2] - Gold stocks faced declines, with Golden Resources (GORO.US) dropping nearly 10% and others following suit [4] US Market Highlights - Stablecoin concept stocks continued to rise, with Tiger Brokers (TIGR.US) increasing over 8% [4] - Trump Media & Technology Group (DJT.US) rose over 2% as the company seeks SEC approval for a blue-chip cryptocurrency ETF [4] - Wolfspeed (WOLF.US) continued to rise, with stock prices increasing over 9% [4] - Intel (INTC.US) rose over 7% after announcing company-wide layoffs [4] - JD.com (JD.US) increased over 2% as it launched its "Double Hundred Plan" for its delivery service [4]

Core Insights - In times of market volatility, investors often prefer value investing, seizing opportunities to buy undervalued stocks as others sell at lower prices [1][2] Value Investment Strategy - Value investing can lead to "value traps" where stocks underperform due to persistent issues rather than temporary problems [3] - Key metrics for identifying value stocks include dividend yield, P/E ratio, and P/B ratio [3] Importance of PEG Ratio - The PEG ratio, defined as (Price/Earnings)/Earnings Growth Rate, is a crucial metric for assessing a stock's intrinsic value [4][5] - A low PEG ratio is favorable for value investors, but it has limitations, such as not accounting for changing growth rates [5] Screening Criteria for Value Stocks - Effective screening criteria for value stocks include a PEG ratio less than the industry median, a P/E ratio below the industry median, Zacks Rank 1 or 2, market capitalization over $1 billion, average 20-day volume greater than 50,000, and upward earnings estimate revisions greater than 5% [6] Selected Stocks - Carnival Corporation (CCL) has a five-year growth rate of 28.5% and a Zacks Rank 2 with a Value Score of A [7][9] - Harmony Gold Mining (HMY) shows a long-term historical growth rate of 73.4%, a Zacks Rank 1, and a Value Score of B [7][10][11] - Dollar Tree (DLTR) has a five-year expected growth rate of 6.7% and a Zacks Rank 2 with a Value Score of B [7][12][13] - Greif, Inc. (GEF) has a long-term expected earnings growth rate of 9.9%, a Value Score of A, and a Zacks Rank of 1 [7][14]

Key Takeaways Gold prices have been on the rise over the past several months, which has given a boost to stocks linked to gold mining. Rising geopolitical tensions, especially the ongoing tensions in the Middle East between Iran and Israel, with the United States now having joined the conflict, have been helping gold prices. Given the current situation, investing in gold mining stocks such as Royal Gold, Inc. (RGLD) , Franco- Nevada Corporation (FNV) , Harmony Gold Mining Company Limited (HMY) and AngloGold ...

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Whil ...