Tuesday, July 09, 2019 11:29:15 AM
By Zacks Investment ResearchStock Markets
2 hours ago (Jul 09, 2019 08:45AM ET)
https://www.investing.com/analysis/alamos-gold-agi-is-an-incredible-growth-stock-3-reasons-why-200437995
Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all.
By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.
However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects, makes it pretty easy to find cutting-edge growth stocks.
Alamos Gold (AGI) is on the list of such stocks currently recommended by our proprietary system. In addition to a favorable Growth Score, it carries a top Zacks Rank.
Studies have shown that stocks with the best growth features consistently outperform the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).
While there are numerous reasons why the stock of this gold mining company is a great growth pick right now, we have highlighted three of the most important factors below:
Earnings Growth
Arguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for Alamos Gold is 11.8%, investors should actually focus on the projected growth. The company's EPS is expected to grow 152% this year, crushing the industry average, which calls for EPS growth of 34.6%.
Cash Flow Growth
Cash is the lifeblood of any business, but higher-than-average cash flow growth is more beneficial and important for growth-oriented companies than for mature companies. That's because, high cash accumulation enables these companies to undertake new projects without raising expensive outside funds.
Right now, year-over-year cash flow growth for Alamos Gold is 14.4%, which is higher than many of its peers. In fact, the rate compares to the industry average of -7.6%.
While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 11.8% over the past 3-5 years versus the industry average of 9.1%.
Promising Earnings Estimate Revisions
Superiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
There have been upward revisions in current-year earnings estimates for Alamos Gold. The Zacks Consensus Estimate for the current year has surged 2.2% over the past month.
Bottom Line
Alamos Gold has not only earned a Growth Score of B based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This combination positions Alamos Gold well for outperformance, so growth investors may want to bet on it.
Alamos Gold Inc. (AGI): Free Stock Analysis Report
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Zacks Investment Research
Alamos Gold
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Recent AGI News
- GFG Closes Private Placement Financing • GlobeNewswire Inc. • 04/19/2024 09:06:41 PM
- Alamos and Argonaut Close Previously Announced Private Placement • GlobeNewswire Inc. • 04/04/2024 04:30:00 PM
- ORFORD COMPLETES ARRANGEMENT WITH ALAMOS • PR Newswire (Canada) • 04/03/2024 06:45:00 PM
- Alamos Gold Announces Closing of Orford Mining Acquisition • GlobeNewswire Inc. • 04/03/2024 04:05:00 PM
- Alamos Gold Provides Notice of First Quarter 2024 Results and Conference Call, and Annual General and Special Meeting of Shareholders • GlobeNewswire Inc. • 04/03/2024 10:40:00 AM
- ORFORD SHAREHOLDERS APPROVE PLAN OF ARRANGEMENT • PR Newswire (Canada) • 03/27/2024 03:43:00 PM
- Alamos Gold Announces Friendly Acquisition of Argonaut Gold • PR Newswire (Canada) • 03/27/2024 11:32:00 AM
- Alamos Gold Announces Friendly Acquisition of Argonaut Gold • GlobeNewswire Inc. • 03/27/2024 11:30:29 AM
- Alamos Gold Provides Notice of Completion of Annual Filings • GlobeNewswire Inc. • 03/26/2024 07:00:00 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 03/06/2024 08:14:21 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 02/28/2024 03:39:45 PM
- Alamos Gold Declares Quarterly Dividend • GlobeNewswire Inc. • 02/28/2024 11:55:00 AM
- GFG Announces Private Placement Financing of up to C$3.3 Million • GlobeNewswire Inc. • 02/23/2024 11:00:00 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 02/22/2024 08:11:48 PM
- Alamos Gold Reports Fourth Quarter and Year-End 2023 Results • GlobeNewswire Inc. • 02/21/2024 10:00:00 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 02/21/2024 04:39:06 PM
- Alamos Gold Reports Mineral Reserves and Resources for the Year-Ended 2023 • GlobeNewswire Inc. • 02/20/2024 10:00:00 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 02/14/2024 03:44:14 PM
- Alamos Gold Intersects Additional High-Grade Mineralization Near Existing Infrastructure at Island Gold which is Expected to Drive Further Growth in Mineral Reserves and Resources • GlobeNewswire Inc. • 02/13/2024 10:00:00 PM
- Form SC 13G/A - Statement of acquisition of beneficial ownership by individuals: [Amend] • Edgar (US Regulatory) • 02/09/2024 04:32:52 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 01/17/2024 04:05:42 PM
- Alamos Gold Provides Notice of Fourth Quarter and Year-End 2023 Results and Conference Call • GlobeNewswire Inc. • 01/16/2024 10:00:00 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 01/16/2024 03:55:08 PM
- ORFORD ANNOUNCES ACQUISITION BY ALAMOS GOLD AT A SIGNIFICANT PREMIUM • PR Newswire (Canada) • 01/15/2024 12:00:00 PM
- Alamos Gold Announces Acquisition of Orford Mining Including the Qiqavik Gold Project • GlobeNewswire Inc. • 01/15/2024 11:52:32 AM
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