Tuesday, October 01, 2019 11:12:26 AM
CONTRIBUTOR
Zacks Equity Research Zacks
PUBLISHED
OCT 1, 2019 9:00AM EDT
Alamos Gold (AGI) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.
The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.
Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.
As such, the Zacks rating upgrade for Alamos Gold is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
Most Powerful Force Impacting Stock Prices
The change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.
For Alamos Gold, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.
Harnessing the Power of Earnings Estimate Revisions
Empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
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Recent AGI News
- Form SD - Specialized disclosure report • Edgar (US Regulatory) • 09/25/2024 06:45:13 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 09/20/2024 04:57:05 PM
- Alamos Gold Helps to Create Inaugural Research Chair to Better Detect and Treat Gastrointestinal Cancers • GlobeNewswire Inc. • 09/20/2024 10:55:00 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 09/13/2024 03:25:42 PM
- Alamos Gold Provides Updated Three-Year Production, Operating and Capital Guidance • GlobeNewswire Inc. • 09/12/2024 09:00:00 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 09/10/2024 08:35:19 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 09/10/2024 08:32:01 PM
- Alamos Gold Recognized as a Top Performer by the Toronto Stock Exchange with Inclusion in the TSX30 • GlobeNewswire Inc. • 09/10/2024 11:30:00 AM
- Alamos Gold Announces Board and Senior Leadership Appointments • GlobeNewswire Inc. • 09/10/2024 10:55:00 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 09/09/2024 05:56:00 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 09/06/2024 02:39:11 PM
- Alamos Gold Announces Development Plan for Puerto Del Aire Outlining an Attractive, High-Return Project with After-Tax IRR of 46%, and Significant Exploration Upside • GlobeNewswire Inc. • 09/04/2024 11:29:35 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 09/04/2024 04:53:51 PM
- Alamos Gold Expands High-Grade Mineralization at Puerto Del Aire and Defines Multiple New High-Grade Zones at Cerro Pelon Supporting Significant Upside Potential within the PDA Project • GlobeNewswire Inc. • 09/04/2024 10:55:00 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 08/29/2024 02:21:06 PM
- Alamos Gold Declares Quarterly Dividend • GlobeNewswire Inc. • 08/29/2024 10:55:00 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 08/01/2024 06:53:48 PM
- Alamos Gold Reports Second Quarter 2024 Results • GlobeNewswire Inc. • 07/31/2024 09:00:00 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 07/23/2024 08:55:37 PM
- Alamos Gold Continues to Expand High-Grade Mineralization Near Existing Infrastructure Across the Island Gold Deposit Supporting Further Expected Growth in Mineral Reserves and Resources • GlobeNewswire Inc. • 07/23/2024 10:55:00 AM
- Form S-8 - Securities to be offered to employees in employee benefit plans • Edgar (US Regulatory) • 07/19/2024 08:16:14 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 07/19/2024 02:03:13 PM
- Alamos Gold Releases 2023 Annual ESG Report • GlobeNewswire Inc. • 07/19/2024 10:55:00 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 07/15/2024 06:34:27 PM
- Alamos Gold Eliminates Majority of Argonaut Gold Hedge Book Providing Increased Exposure to Higher Gold Prices • GlobeNewswire Inc. • 07/15/2024 10:55:00 AM
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