Harmony Gold (HMY) closed the latest trading day at $10.13, representing a modest 1.3% increase compared to the previous session’s close. Despite this positive movement, the stock lagged behind the broader market’s performance. The S&P 500 experienced a 1.61% gain, the Dow climbed 1.39%, and the Nasdaq saw a significant increase of 2.34%. Looking at the broader picture, Harmony Gold’s stock has been struggling recently, having lost 5.12% in the past month. This decline outpaced the 5.56% loss experienced by the Basic Materials sector, and the 2.88% drop in the S&P 500.
Investors are keenly watching Harmony Gold’s performance, particularly ahead of its upcoming earnings disclosure scheduled for August 28, 2024. Analysts are anticipating earnings of $1.20 per share and revenue of $3.7 billion for the full year. These figures would represent substantial year-over-year increases of 166.67% and 33.15%, respectively. However, it’s crucial for investors to stay informed about any recent revisions to analyst estimates for Harmony Gold. These revisions often reflect short-term business trends, which can fluctuate frequently. Positive estimate revisions typically signal analyst optimism regarding the company’s business and profitability.
Based on research, these estimate revisions are directly linked to near-term stock movements. To capitalize on this trend, the Zacks Rank has been developed, a proprietary model that analyzes these estimated changes and assigns an operational rating. The Zacks Rank system spans from #1 (Strong Buy) to #5 (Strong Sell), with a proven track record of success. Historically, stocks with a #1 ranking have delivered an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate for Harmony Gold has remained steady. Currently, Harmony Gold holds a Zacks Rank of #5 (Strong Sell).
Analyzing valuation metrics, Harmony Gold currently has a Forward P/E ratio of 8.33. This figure suggests a discount compared to the industry’s Forward P/E of 15.8. The Mining – Gold industry falls under the Basic Materials sector. This sector currently holds a Zacks Industry Rank of 80, placing it within the top 32% of all 250+ industries. The Zacks Industry Rank evaluates the strength of distinct industry groups by calculating the average Zacks Rank of individual stocks within those groups. Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
