Iamgold Corporation (IAG) Hits Fresh High: Is There Still Room to Run?

Have you been paying attention to shares of Iamgold (IAG)? Shares have been on the move with the stock up 8.9% over the past month. The stock hit a new 52-week high of $6.04 in the previous session. Iamgold has gained 136% since the start of the year compared to the 7.2% move for the Zacks Basic Materials sector and the 37.2% return for the Zacks Mining - Gold industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on August 8, 2024, Iamgold reported EPS of $0.16 versus consensus estimate of $0.08.For the current fiscal year, Iamgold is expected to post earnings of $0.51 per share on $1.6 billion in revenues. This represents a 477.78% change in EPS on a 62.19% change in revenues. For the next fiscal year, the company is expected to earn $0.74 per share on $2.04 billion in revenues. This represents a year-over-year change of 42.31% and 27.17%, respectively.Valuation MetricsIamgold may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.Iamgold has a Value Score of B. The stock's Growth and Momentum Scores are C and A, respectively, giving the company a VGM Score of A.In terms of its value breakdown, the stock currently trades at 11.6X current fiscal year EPS estimates, which is not in-line with the peer industry average of 16X. On a trailing cash flow basis, the stock currently trades at 10.8X versus its peer group's average of 10.8X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Iamgold currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Iamgold meets the list of requirements. Thus, it seems as though Iamgold shares could still be poised for more gains ahead.How Does IAG Stack Up to the Competition?Shares of IAG have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Barrick Gold Corporation (GOLD). GOLD has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of C, and a Momentum Score of A.Earnings were strong last quarter. Barrick Gold Corporation beat our consensus estimate by 23.08%, and for the current fiscal year, GOLD is expected to post earnings of $1.27 per share on revenue of $13.24 billion.Shares of Barrick Gold Corporation have gained 2.7% over the past month, and currently trade at a forward P/E of 16.45X and a P/CF of 10.46X.The Mining - Gold industry is in the top 7% of all the industries we have in our universe, so it looks like there are some nice tailwinds for IAG and GOLD, even beyond their own solid fundamental situation.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Iamgold Corporation (IAG): Free Stock Analysis Report Barrick Gold Corporation (GOLD): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks