3 Reasons Growth Investors Will Love Kinross Gold (KGC)
KinrossKinross(US:KGC) ZACKS·2025-12-01 18:46

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying those with genuine growth potential can be challenging due to associated risks and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system aids in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - Kinross Gold (KGC) is currently highlighted as a recommended growth stock, possessing a favorable Growth Score and a top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is a critical factor for growth investors, with double-digit growth seen as indicative of strong future prospects [3] - Kinross Gold has a historical EPS growth rate of 12%, but projected EPS growth for this year is expected to be 143.1%, significantly surpassing the industry average of 65.4% [4] Group 3: Asset Utilization - The asset utilization ratio, or sales-to-total-assets (S/TA) ratio, is an important metric for assessing efficiency in growth investing [5] - Kinross Gold's S/TA ratio is 0.57, indicating that the company generates $0.57 in sales for every dollar in assets, outperforming the industry average of 0.4 [5] Group 4: Sales Growth - Sales growth is another key indicator, with Kinross Gold expected to achieve a 34% sales growth this year, compared to the industry average of 31.3% [6] Group 5: Earnings Estimate Revisions - Trends in earnings estimate revisions are correlated with stock price movements, with positive revisions indicating potential for price increases [7] - Kinross Gold's current-year earnings estimates have been revised upward, with the Zacks Consensus Estimate increasing by 5.4% over the past month [8] Group 6: Overall Positioning - Kinross Gold has achieved a Growth Score of A and a Zacks Rank 1 due to positive earnings estimate revisions, positioning it well for potential outperformance [10]