A Pair of Stock To Put On Your Watchlist: Alamos Gold Inc. (AGI), Companhia Energetica de Minas Gerais (CIG)

Alamos Gold Inc. (NYSE: AGI) shares are 69.60% up in the year-to-date (YTD) period and have moved 3.44% or $0.34 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +205.69% lower. Comparatively, the stock is -11.83% down YTD and 27.63% over the trailing 3-month period. If we look at the shorter duration, its week performance is -1.45% and -10.99% over the month.

Analyst Recommendations

On March 12, 2020, BofA/Merrill recommended the AGI stock is a Underperform, while earlier, National Bank Financial had Upgrade the stock as a Outperform on April 23, 2020. 13 analysts offering the recommendations for the stock have a consensus rating of 2.20 to suggest that the AGI stock is a “Moderate Buy. 0 of the 13 analysts rate the stock as a “Sell”, while 1 has rated it as “Underweight”. 9 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $10.21 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $8.82. The forecasts give the Alamos Gold Inc. stock a price target range of $15.33 on the higher side while at least one analyst think the stock could plunge to a low of $10.57. The two limits represent an upside potential of 33.4% or 3.41%.

Earnings Forecast

Analysts estimate the earnings to increase 100.00% in the current quarter to $0.06, up from the -$0.04 reported in the same quarter a year ago. For the current year, earnings should grow to an average of $0.15, up 11.40% from $0.02 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between $0.02 and $0.11. Wall Street estimates earnings per share to be at an average of $0.22 for the next year.

Companhia Energetica de Minas Gerais (NYSE:CIG), on the other hand, is trading around $1.96 with a market cap of $2.87B and analyst research firms have a negative stance on its shares. Analysts predict that the stock will reach $2.64 and spell out a more modest performance – a 25.76% return. Some analysts are even forecasting $0 per share in earnings this year on a short term (1 year) basis.

Let us briefly look at the Companhia Energetica de Minas Gerais (CIG) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

CIG’s operating margin was positive on the trailing 12 months basis, remaining steady at 10.00%, while the operating expenses over the recent quarter were at $334.95 million. This represented a 75.53% of the company’s total revenues which amounted $1.37 billion.

In terms of the balance sheet & cash flow as of Current Qtr., the total assets figure advanced to $11.38 billion from $12.58 billion over the previous quarter. Short term investments amounted to $451.12 million while total current assets were at $2.37 billion. The cash flow from operating activities totaled $558.88 million, significantly higher than the $163.55 million reported in the year-ago quarter. The company’s free cash flow for the quarter was $543.97 million.

Major holders

Insiders own 1.00% of the company shares, while shares held by institutions stand at 12.30% with a share float percentage of 1.11B. Investors are also buoyed by the number of investors in a company, with Companhia Energetica de Minas Gerais having a total of 170 institutions that hold shares in the company. The top two institutional holders are Blackrock Inc. with over 41.59 million shares worth more than $81.9 million. As of Jun 29, 2020, Blackrock Inc. held 21.75% of shares outstanding.

The other major institutional holder is Vanguard Group, Inc. (The), with the investment firm holding over 6.4 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $12.61 million and represent 3.35% of shares outstanding.