Earnings Estimates Rising for Integra Resources (ITRG): Will It Gain?

Integra Resources Corp. (ITRG) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving.

Analysts' growing optimism on the earnings prospects of this company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- is principally built on this insight.

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.

Consensus earnings estimates for the next quarter and full year have moved considerably higher for Integra Resources, as there has been strong agreement among the covering analysts in raising estimates.

The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:

12 Month EPS

Current-Quarter Estimate Revisions

The earnings estimate of $0.07 per share for the current quarter represents a change of +187.5% from the number reported a year ago.

Over the last 30 days, one estimate has moved higher for Integra Resources while one has gone lower. As a result, the Zacks Consensus Estimate has increased 15.39%.

Current-Year Estimate Revisions

For the full year, the earnings estimate of $0.26 per share represents a change of +252.94% from the year-ago number.

In terms of estimate revisions, the trend for the current year also appears quite encouraging for Integra Resources. Over the past month, three estimates have moved higher compared to one negative revision, helping the consensus estimate increase 181.08%.

Favorable Zacks Rank

The promising estimate revisions have helped Integra Resources earn a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.

Bottom Line

While strong estimate revisions for Integra Resources have attracted decent investments and pushed the stock 32.6% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.

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This article originally published on Zacks Investment Research (zacks.com).

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