Scotia Capital Increased Yamana Gold’s (AUY) target price from $3.5 to $4.0 on May 5, 2017. Scotia currently has a “sector perform” rating on the stock.
Royalty and streaming companies significantly outperformed the benchmark index (GDX) in the first half of 2017.
Intermediate gold miners’ (RING) (GDXJ) stock performances were better than those of senior gold miners in 1H17.
North American senior gold miners (RING) had a strong run in 2016, with an average gain of 72% in the group as a whole.
Berenberg noted that recent developments at Barrick, in addition to its deleveraging and strong free cash flow generation, are positives for the stock.
Gold miners in 2017 seem to be driven more by company-specific factors than by the direction of gold prices.
According to Wall Street analysts surveyed by Reuters, PotashCorp is expected to see a big drop in its capital expenditures in the coming four quarters.
Cost savings from the lower cost of goods might boost PotashCorp’s gross margins. However, cost savings could be offset by an increased operating cost.
PotashCorp (POT) had lackluster earnings growth last year. However, the company reported EPS (earnings per share) growth in 1Q17.
PotashCorp’s gross margins are expected to improve in its 2Q17 earnings. Analysts expect its gross margins to rise to 28% on gross income of $296 million.
Compared to the second quarter in the past two years, PotashCorp’s 2Q17 earnings are expected to deliver a better performance.
PotashCorp (POT) will release its 2Q17 earnings on July 27, 2017, before the market opens. The company has been on a bumpy ride in recent quarters.
On July 17, 2017, 3M’s (MMM) one-year forward PE ratio stood at 22.7x, compared with peer Honeywell’s (HON) one-year forward PE ratio of 18.2x.
As of July 18, of the 16 analysts tracking 3M (MMM), 38% have recommended the stock as a “buy,” while 43% have recommended a “hold.”
As of July 17, 2017, analysts expect 3M (MMM) to post EPS of $2.54 in 2Q17, which would represent an increase of 22.1% on a YoY basis.
As of July 17, 2017, analysts consensus are forecasting 3M’s 2Q17 revenues to come in at $7.86 billion, which would represent a 2.6% rise on a YoY basis.
On April 25, 2017, 3M (MMM) announced its 1Q17 earnings. Since then, the stock has taken big strides and has gained nearly 8.8%, outperforming SPY.
Crude oil opened the week on a mixed note by pulling back on Monday. Oil opened higher on July 19 and traded with strength in the early hours.
Most mining companies saw a down day on Thursday, July 13, as precious metals fell lower.
Among these miners in our analysis, Primero Mining has the highest correlation with gold, and First Majestic Silver has the lowest correlation.