Randgold Resources Ltd (GOLD) just hit another new all-time high above $104 on the back of surging gold prices. With the world turning to gold on fear of inflation and easy money from Central banks, this Zacks # 1 rank stock has upward momentum to boot.
Company Description
Randgold Resources Ltd, with its subsidiaries, operates gold mines in West and Central Africa. The company was founded in 1995 and has a market cap of $9.4 billion.
Randgold has been hot for the last few months on the back of surging gold prices, helped by the company’s solid Q2 results from early August that came in better than expected.
Second-Quarter Results
Earnings for the period came in strong at 38 cents, 41% ahead of the Zacks Consensus Estimate.
Randgold’s mines produced 93,880 ounces of gold during the quarter at an average cost of $655 per ounce. Its realized gold prices for the quarter came out to $1.109 per ounce.
Balance Sheet Looks Great
With a solid quarter on hand, GOLD’s already great balance sheet looks even better, with cash and equivalents up $267 million from last year to $487 million against a negligible debt load of less than $1 million.
Estimates
We have seen some modest movement in the current-year estimate in the last 2 months, up 3 cents to $1.85. The next-year estimate however has been more bullish, up 36 cents in the same time to $4.24, an awesome 129% growth projection.
With shares jumping higher over the last few months, the valuation picture has gotten a bit pricey, with a forward P/E of 55X against its peers average of 34X.
2-Year Chart
GOLD recently jumped higher to hit a new all-time high above $104 as gold prices approach the $1400 level. But in spite of the solid gains, the stochastic below the chart is signaling that shares are trading safely away from over-bought territory. Look for support from the trend line and short-term low an any weakness. Take a look below.
Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the new Zacks Momentum Trader Service.
RANDGOLD RSRCS (GOLD): Free Stock Analysis Report
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