Kinross Gold Corp (NYSE:KGC) Passes Stringent Growth Screen

A systematic method for growth investing can help investors find companies with solid fundamental momentum. One recognized method comes from Louis Navellier's "The Little Book That Makes You Rich," which lists eight specific rules for choosing leading growth stocks. These rules concentrate on earnings revisions, sales and earnings growth, margin improvement, cash flow strength, and return on equity. A recent screen using these strict filters has found Kinross Gold Corp (NYSE:KGC) as matching the strategy's high standards.

Earnings Revisions and Surprises

The Little Book strategy puts notable weight on analyst sentiment and earnings performance, viewing upward revisions and positive surprises as solid signs of future potential. Kinross Gold shows strength in both areas:

• The average EPS estimate for the next quarter has been increased by 26.8% over the last three months, showing rising analyst optimism.
• The company has reported positive EPS surprises in three of the last four quarters, exceeding estimates by an average of 20.5%.

These figures are important because steady earnings outperformance often leads analysts to raise their future estimates, creating a positive cycle that can push the stock price up.

Strong Sales and Earnings Growth

A central idea of growth investing is finding companies that are clearly enlarging their business. Kinross displays solid momentum in its top and bottom lines:

• Revenue growth year-over-year is at 34.4%.
• Quarterly sales have increased 41.7% compared to the same quarter last year.
• Earnings per share have jumped 151.1% over the past year.
• Quarterly EPS has risen by 214.3% year-over-year.

This quickening growth pattern is precisely what the strategy looks for, as rising sales combined with even quicker earnings growth implies the company is not only growing, but also becoming more profitable as it gets larger.

Improving Profitability and Solid Cash Flow

The strategy searches for companies that are increasing revenue while also bettering their operational efficiency and financial condition. Kinross displays notable progress here:

• The company's operating margin has improved by 81.7% over the past year.
• Free cash flow has increased by a notable 356.4% in the last twelve months.

Improving margins show that the company is managing costs well as it grows, while strong free cash flow growth offers financial room for more investment, lowering debt, or shareholder returns.

Earnings Momentum and High Return on Equity

The final parts of the strategy confirm the growth is high-grade and lasting. Kinross satisfies these final checks:

• The current quarterly EPS growth of 214.3% greatly exceeds the growth rate from the same quarter a year ago, confirming positive earnings momentum.
• The company attains a return on equity of 22.3%, much higher than the strategy's minimum requirement of 10%.

High ROE shows that management is using shareholder capital effectively to produce profits, a sign of a well-managed growth company.

Fundamental Rating Overview

A look at Kinross Gold's full fundamental analysis report shows an overall rating of 7 out of 10. The company gets especially high scores in profitability and financial health, putting it with the best in its industry. While its valuation seems fair compared to industry peers, its growth view is balanced by analyst predictions for a slowing in earnings and revenue in the next few years. This varied growth outlook implies investors should watch if the company can keep surpassing predictions.

Find More Possible Candidates

Kinross Gold Corp stands for just one of the companies now passing the Little Book strategy screen. Investors wanting to find other stocks that meet these strict growth rules can view the complete, current results using the dedicated screening link.

Disclaimer: This article is for informational purposes only and does not constitute investment advice of any kind. The author has no position in any stock mentioned. All investments involve risk, and you should conduct your own research and consult with a qualified financial advisor before making any investment decisions.