Kinross Gold Corp (NYSE:KGC) Identified by Louis Navellier's Growth Stock Screen

An investment strategy outlined in Louis Navellier's "The Little Book That Makes You Rich" focuses on identifying superior growth stocks through a disciplined, multi-factor approach. The methodology is built on eight specific rules designed to pinpoint companies demonstrating strong and accelerating fundamental performance. These criteria range from positive earnings revisions and surprises to expanding sales, good cash flow generation, and high returns on equity. The goal is to systematically find equities with the underlying financial strength and momentum that have historically preceded significant price appreciation. This quantitative screening process serves as a starting point for further analysis, aiming to uncover businesses positioned for sustained growth.

Screening Criteria and Kinross Gold's Alignment

A screen configured with Navellier's eight rules recently identified Kinross Gold Corp (NYSE:KGC) as a potential candidate. The company's recent financial results show a strong alignment with the core tenets of the strategy, which prioritize dynamic growth and improving profitability.

• Positive Earnings Revisions: A key signal in the strategy is when analysts become more optimistic, revising their future earnings estimates upward. Kinross meets this criterion, with the consensus EPS estimate for the next quarter having been raised by over 65% in the last three months. This suggests growing confidence in the company's near-term profit potential.
• Positive Earnings Surprises: Consistently beating expectations is viewed as a sign of operational excellence and conservative guidance. Kinross has surpassed analyst EPS estimates in three of the last four quarters, with an average surprise of over 20%. This track record of outperformance can fuel positive sentiment and lead to further estimate revisions.
• Increasing Sales and Earnings Growth: The strategy demands strong top-line and bottom-line expansion. Kinross exhibits explosive growth on both fronts, which is critical for a company to be classified as a true growth stock.
  • Revenue Growth (Q2Q): 41.7%
  • Revenue Growth (Y2Y): 34.4%
  • EPS Growth (Q2Q): 214.3%
  • EPS Growth (Y2Y): 151.1%
• Expanding Operating Margin: It is not enough for sales to grow; profitability must improve concurrently. Kinross shows a remarkable expansion in its operating margin, which grew by over 81% in the past year. This indicates the company is effectively converting higher revenue into greater operational profit.
• Strong Cash Flow: Healthy free cash flow is essential for funding growth initiatives, paying down debt, or returning capital to shareholders. Kinross demonstrates exceptional strength here, with free cash flow growth exceeding 356% over the past year, providing significant financial flexibility.
• Positive Earnings Momentum: The strategy seeks acceleration, not just growth. The current quarterly EPS growth of 214.3% significantly outpaces the growth rate from the comparable quarter a year ago, indicating a powerful positive momentum shift.
• High Return on Equity (ROE): Finally, the strategy requires efficient use of shareholder capital. Kinross delivers on this front with an ROE of 22.3%, which is significantly higher than the industry average and indicates a highly profitable operation relative to the equity invested.

Fundamental Analysis Overview

A broader fundamental analysis of Kinross Gold reinforces the findings from the Little Book screen. The company receives a solid overall fundamental rating, with particular strength in its health and profitability profiles. Its balance sheet is considered healthy, with a manageable debt level and excellent solvency metrics. Profitability ratios, including return on assets and invested capital, rank among the best in the metals and mining industry. While the valuation appears reasonable relative to both the industry and the broader market, it is important to note that analyst projections suggest a potential slowdown in growth in the coming years, a factor investors should monitor closely.

Exploring Further Investment Ideas

Kinross Gold Corp serves as an example of the type of company the Little Book strategy aims to uncover. For investors interested in discovering other stocks that currently meet these rigorous growth criteria, the screen can be accessed and customized directly.

You can view the complete and current list of results from this screen here: Louis Navellier's Little Book Screen.

Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation, or an offer to buy or sell any securities. Investors should conduct their own research and consider their individual financial circumstances before making any investment decisions.