Zacks' Bull Of The Day: Goldcorp May Have 10%+ Upside. (NYSE:GG) | Seeking Alpha
................In 2013 production was 2.7 million
ounces. This year GG is looking for 2.95 to 3.1 million ounces and next
year 3.6 to 3.8 million. This outlook has Goldcorp becoming free cash
flow positive in Q4 2014 assuming gold prices at $1200 an ounce.
We have it as a Zacks Rank #1 (Strong Buy) due to recent earnings estimate
revisions over the last 60 days. Four analysts have increased their
estimates for the current year and next year. The revisions have pushed
consensus up from 70 cents per share to 80 for this year.
Last quarter’s earnings surprise came in at 26 cents versus expectations for
14 cents. This firm beat along with the agreement and magnitude of the
revisions by analysts are what give this stock such a strong Zacks Rank.
The Zacks Rank isn’t the only reason why I like the stock at these levels.
The technical chart is very bullish for GG as well. Over the last two
weeks GG has been consolidating just below $28. During the consolidation
the stock has remained firmly above its 40 day exponential moving
average which currently sits down at $25.86.
The stochastics are showing an overbought position currently but that shouldn’t stop anyone
from buying the stock. This indicator can stay overbought for extended
periods of time during rallies. The last big run for the stock took it
from support ant $23 up to the level it trades at today. The next push
upwards will likely approach the 52 week high just above $29. If the
stock can push through that level than the August 2013 high near $32
comes into focus.