B2Gold (BTG) closed the most recent trading day at $6.20, moving +0.65% from the previous trading session. This change lagged the S&P 500’s 1.2% gain on the day. Elsewhere, the Dow gained 0.53%, while the tech-heavy Nasdaq added 1.64%.
Heading into today, shares of the gold, silver and copper miner had lost 5.52% over the past month, lagging the Basic Materials sector’s loss of 1.35% and the S&P 500’s loss of 2.23% in that time.
Wall Street will be looking for positivity from BTG as it approaches its next earnings report date. The company is expected to report EPS of $0.15, up 66.67% from the prior-year quarter.
BTG’s full-year Zacks Consensus Estimates are calling for earnings of $0.49 per share and revenue of $1.81 billion. These results would represent year-over-year changes of +250% and +51.51%, respectively.
It is also important to note the recent changes to analyst estimates for BTG. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 6.42% higher within the past month. BTG currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, BTG is holding a Forward P/E ratio of 12.53. For comparison, its industry has an average Forward P/E of 15.95, which means BTG is trading at a discount to the group.
Investors should also note that BTG has a PEG ratio of 0.63 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. Mining – Gold stocks are, on average, holding a PEG ratio of 1.96 based on yesterday’s closing prices.
The Mining – Gold industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 159, putting it in the bottom 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow BTG in the coming trading sessions, be sure to utilize Zacks.com.
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