Harmony Gold (HMY) closed the most recent trading day at $6.35, moving -1.55% from the previous trading session. This change lagged the S&P 500’s daily gain of 0.72%. Elsewhere, the Dow gained 0.89%, while the tech-heavy Nasdaq added 1.47%.
Heading into today, shares of the gold miner had gained 43.02% over the past month, outpacing the Basic Materials sector’s gain of 9.18% and the S&P 500’s gain of 5.85% in that time.
HMY will be looking to display strength as it nears its next earnings release.
Investors should also note any recent changes to analyst estimates for HMY. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. HMY currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, HMY is holding a Forward P/E ratio of 12.65. This valuation marks a discount compared to its industry’s average Forward P/E of 26.63.
It is also worth noting that HMY currently has a PEG ratio of 0.28. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. The Mining – Gold was holding an average PEG ratio of 2.94 at yesterday’s closing price.
The Mining – Gold industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 51, which puts it in the top 21% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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 HMY in the coming trading sessions, be sure to utilize Zacks.com.
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