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4 High-Earnings Yield Value Picks Ahead of Potential Fed Rate Cut
ZACKS· 2025-10-29 13:56
Core Insights - Major U.S. stock market indices reached record highs as investors anticipate the Federal Reserve's policy decision, with the S&P 500 climbing 0.23% to 6,890.89, briefly surpassing the 6,900 mark for the first time [1][10] - The Federal Reserve is expected to announce a quarter-point rate cut, with potential additional cuts in the future, despite a slight increase in September inflation [2] - Value investing is gaining traction in the current economic uncertainty, focusing on stocks priced below their intrinsic value [3][10] Market Overview - The Dow, S&P 500, and Nasdaq all achieved new highs, indicating strong investor sentiment [1] - Analysts believe the Fed will prioritize supporting a softening labor market over controlling inflation, although missing economic data due to the government shutdown may complicate policy signals [2] Investment Strategy - Value investing emphasizes purchasing undervalued stocks, which can provide opportunities for profit as markets often misprice stocks [3] - Companies with solid fundamentals and reasonable valuations are highlighted as potential investment opportunities [4] Earnings Yield Metric - Earnings yield is a key metric for value investors, calculated as (Annual Earnings per Share/Market Price) x 100, and serves as a comparison tool against bond returns [5][6] - A high earnings yield may indicate that a stock is undervalued, while a low yield could suggest overvaluation [5] Stock Screening Criteria - The primary screening criterion is an Earnings Yield greater than 10%, supplemented by estimated EPS growth and average daily volume [7][8] - Additional filters include a current price of at least $5 and a Zacks Rank of 1 (Strong Buy) or 2 (Buy) for stock selection [9] Selected Value Stocks - Aura Minerals Inc. (AUGO) is focused on gold and base metal projects, with projected earnings growth of 120.3% and 165.6% for 2025 and 2026, respectively [11] - Commercial Metals Company (CMC) anticipates sales and earnings growth of 5% and 73% for fiscal 2026 [12] - Par Pacific Holdings (PARR) projects significant earnings growth of 951% and 24% for 2025 and 2026 [13] - CorMedix Inc. (CRMD) expects earnings growth of 717% and 34% for 2025 and 2026 [14]
New Gold(NGD) - 2025 Q3 - Earnings Call Transcript
2025-10-29 13:32
Financial Data and Key Metrics Changes - The company reported third quarter revenue of $463 million, an increase from the prior year due to higher gold and copper prices and sales volumes [13] - Cash generated from operations before working capital adjustments was $296 million, or $0.37 per share, higher than the prior year period [13] - The company achieved record quarterly free cash flow of $205 million, driven by higher revenue [13] - Net earnings for the quarter were approximately $142 million, or $0.18 per share, primarily due to increased revenues [13][14] - All-in sustaining costs reduced from the second quarter by $425 to $966 per ounce, with an average realized gold price of $3,458 per ounce [5][14] Business Line Data and Key Metrics Changes - New Afton produced approximately 115,200 ounces of gold and 12 million lbs of copper in the quarter, with B3 cave overperforming [5][7] - Rainy River achieved record quarterly production of over 100,000 ounces of gold, a 63% increase over the second quarter, with all-in sustaining costs of $1,043 per ounce [4][10] - New Afton achieved an all-in sustaining cost of negative $595 per ounce after considering copper credits [7] Market Data and Key Metrics Changes - The average realized gold price was $3,458 per ounce, contributing to the increase in revenue [5][13] - The company expects all-in sustaining costs to reduce further through the fourth quarter [5] Company Strategy and Development Direction - The company is focused on increasing production and reducing costs, with a target of ramping up C-Zone to full processing capacity of approximately 16,000 tons per day by early 2026 [6][10] - Exploration initiatives are being advanced, with a significant increase in the exploration budget to $22 million for approximately 63,000 meters of drilling [15][18] - The company aims to generate approximately $1.8 billion of free cash flow over the next three years, with expectations of being at the high end of this projection for 2025 [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued significant growth in gold and copper production over the next two years, with expectations of decreasing unit costs per ounce of gold [19][20] - The company is committed to maintaining a strong balance sheet while investing in exploration and organic opportunities [29] - Management highlighted the importance of safety, with a low total recordable injury frequency rate of 0.61, down from 0.82 in the previous quarter [4][20] Other Important Information - The company repaid a total of $260 million in debt during the quarter, including the full repayment of a $150 million credit facility drawn earlier [6][14] - Significant safety milestones were achieved, with New Afton surpassing 1 million hours and Rainy River surpassing 1.5 million hours worked without a lost time injury [4] Q&A Session Summary Question: Can you provide a breakout of tonnage from the C-Zone and B-Zone? - The B-Zone contributed 4,300 tons per day, while the C-Zone contributed the remainder [24] Question: What are your plans for capital allocation with the free cash flow? - The company takes a disciplined approach to capital allocation, focusing on maintaining a strong balance sheet, investing in exploration, and evaluating capital returns to shareholders [29] Question: What is the expected grade for K-Zone? - The company is still in the drilling phase and will need to update models to determine the total size and grade of K-Zone [33] Question: Can you provide an update on tailings management at Rainy River? - The company is assessing the full potential of K-Zone and is not currently seeing a need for significant investment in the tailings management area [39] Question: What should we expect for Rainy River's performance in Q4? - The company expects continued positive performance in Rainy River, with no significant changes in trajectory [45] Question: How will the drilling results impact the resource update for K-Zone? - The company plans to include all drilling results in the resource update scheduled for January [49]
Buy These 5 Best Value Stocks to Make the Most of Price-to-Book Ratio
ZACKS· 2025-10-29 13:05
Core Insights - The article emphasizes the importance of the price-to-book (P/B) ratio as a valuation tool for identifying undervalued stocks with high growth potential, alongside the more commonly used price-to-earnings (P/E) and price-to-sales (P/S) ratios [1][5]. Understanding P/B Ratio - The P/B ratio is calculated by dividing the market capitalization by the book value of equity, providing insight into whether a stock is under- or overvalued [1][5]. - A P/B ratio of less than one indicates that a stock is trading below its book value, suggesting it may be a good buy, while a ratio above one may indicate overvaluation [5][6]. - The P/B ratio is particularly relevant for industries with tangible assets, such as finance and manufacturing, but may be misleading for companies with high R&D expenses or significant debt [8][9]. Screening Parameters for Low P/B Stocks - The article identifies five stocks with low P/B ratios that also exhibit strong growth prospects: StoneCo, PagSeguro Digital, General Motors, Itron, and Newmont [11]. - These stocks are characterized by a strong Value Score, favorable Zacks Rank, and solid long-term earnings per share (EPS) growth outlook [11][16][17][18][19][21]. - The screening criteria include a P/B ratio below the industry median, a P/S ratio below the industry median, a P/E ratio using forward estimates below the industry median, and a PEG ratio of less than one [12][13][14]. Company Profiles - **StoneCo (STNE)**: A financial technology provider based in Brazil, with a projected 3-5 year EPS growth rate of 30.3% and a Zacks Rank of 1 [16]. - **PagSeguro Digital (PAGS)**: Offers digital payment solutions primarily in Brazil, with a projected EPS growth rate of 14.2% and a Zacks Rank of 2 [17]. - **General Motors (GM)**: One of the largest automakers globally, with a projected EPS growth rate of 7.0% and a Zacks Rank of 1 [18]. - **Itron (ITRI)**: A technology and services company focused on utility and municipal sectors, with a projected EPS growth rate of 30.0% and a Zacks Rank of 2 [19]. - **Newmont (NEM)**: A leading gold producer with significant reserves and a projected EPS growth rate of 26.05%, holding a Zacks Rank of 1 [21].
New Gold Inc. 2025 Q3 - Results - Earnings Call Presentation (TSX:NGD:CA) 2025-10-29
Seeking Alpha· 2025-10-29 13:02
Group 1 - The article does not provide any relevant content regarding company or industry insights [1]
Dynasty Continues Drilling at Pelham and South Pelham Targets at Thundercloud
Newsfile· 2025-10-29 13:00
Core Insights - Dynasty Gold Corp. is conducting a 5,000-meter drilling program at its Thundercloud property, focusing on the Pelham targets to expand known gold mineralization and potentially accelerate commercial production [1][5] Drilling Program Details - The drilling program includes infill holes at the Pelham Resource Target area to test adjacent ground to previously identified high-grade gold mineralization from 2022-2024 [1] - Initial core holes will be drilled under the Glatz Open Cut in the Contact target zone, targeting high-grade gold surface mineralization of 3 meters at 89.4 grams per tonne [2] - A pioneer hole will explore the northwest extension of the main Pelham body of gold mineralization, intersecting multiple northwest-trending faults to search for Red Lake-style gold mineralization [3] Company Overview - Dynasty Gold Corp. is a Canadian mineral exploration company focused on gold exploration in North America, with its Thundercloud property located in the Archean Manitou-Stormy Lakes Greenstone Belt in northwestern Ontario [5]
GoldHaven Advances Drilling at Copecal Gold Project; East Anomaly Phase Completed
Globenewswire· 2025-10-29 13:00
VANCOUVER, British Columbia, Oct. 29, 2025 (GLOBE NEWSWIRE) -- GoldHaven Resources Corp. (CSE: GOH | OTCQB: GHVNF | Frankfurt: 4QS) (“GoldHaven” or the “Company”) is pleased to provide an update on ongoing exploration activities at its 100%-owned Copeçal Project in Brazil, where the Company is advancing a 1,200-metre diamond drilling program designed to test key gold-in-soil and geophysical anomalies. Program Highlights Four diamond drill holes completed totaling ~420 metres at the East AnomalyFifth hole co ...
Baru Gold Announces Board Change and Grants Options
Thenewswire· 2025-10-29 13:00
Core Points - Baru Gold Corp. has appointed Keith Margetson to its board of directors, bringing over 40 years of public accounting experience [1][2] - Margetson has served as CFO for several publicly traded companies and is a qualified Canadian CPA and US Certified Public Accountant [2] - The company granted 300,000 stock options to Margetson, allowing him to purchase shares at an exercise price of $0.07 for two years, pending TSX Venture Exchange approval [2] Company Overview - Baru Gold Corporation is a junior gold developer with NI 43-101 gold resources located in Indonesia, a leading gold-producing country [3] - The company is based in both Indonesia and North America, with a team experienced in operating small-scale gold and coal assets [3] - Baru is positioned to become Indonesia's next gold producer, indicating growth potential in the mining sector [3]
Centerra Gold (CGAU) - 2025 Q3 - Earnings Call Presentation
2025-10-29 13:00
TSX CG NYSE CGAU STRONG PLATFORM BUILDING A FOR FUTURE GROWTH Third Quarter 2025 Results Conference Call & Webcast OCTOBER 29, 2025 Cautionary Statement on Forward Looking Information All statements, other than statements of historical fact contained or incorporated by reference in this document, which address events, results, outcomes or developments that the Company expects to occur are, or may be deemed to be, forward-looking information or forward-looking statements within the meaning of certain securit ...
Osisko Development Closes C$82.5 Million Private Placement
Globenewswire· 2025-10-29 12:32
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES MONTREAL, Oct. 29, 2025 (GLOBE NEWSWIRE) -- Osisko Development Corp. (NYSE: ODV, TSXV: ODV) ("Osisko Development" or the "Company") is pleased to announce the successful closing of its previously-announced oversubscribed private placement offering of 15,409,798 common shares of the Company (the "Common Shares") for aggregate gross proceeds of approximately C$82.5 million (the "Offering"). The Offering is compr ...
New Gold(NGD) - 2025 Q3 - Earnings Call Presentation
2025-10-29 12:30
Q3 2025 Earnings Call and Webcast October 29, 2025 Cautionary Notes All amounts in U.S. Dollars unless otherwise stated Cautionary note regarding forward-looking statements Certain information contained in this presentation, including any information relating to New Gold's future financial or operating performance are "forward-looking". All statements in this presentation, other than statements of historical fact, which address events, results, outcomes or developments that New Gold expects to occur are "fo ...