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Iamgold: Strong Growth, Low Valuation, But Lofty Technical Stock Levels

Seeking Alpha
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⚡ Quantum Brief
The gold miner reported Q4 2025 revenue surged 132% year-over-year, with EPS jumping 367%, driven by rising gold prices and increased production, marking its strongest quarterly performance in years. Despite robust growth, the company trades at just 10.4x forward EPS and 5.4x EV/EBITDA—well below sector averages—presenting a discounted valuation amid expanding operations and favorable commodity trends. Management is accelerating shareholder returns with a $400–$500M buyback program while reducing debt, bolstering confidence in sustained profitability if gold prices remain elevated through 2026. Technical indicators suggest the stock is overbought after a 194% rally since mid-2025, prompting a "HOLD" rating despite strong fundamentals, as near-term pullback risks outweigh immediate upside potential. Long-term growth hinges on the Nelligan Mining Complex, though gold price volatility and stretched technical levels introduce caution for new investors despite the bullish operational outlook.
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David Zanoni11.97K FollowersFollow5ShareSavePlay(11min)Comments(2)SummaryIAMGOLD delivered robust Q4 2025 results, with revenue up 132% and EPS up 367% year-over-year, driven by higher gold prices and production.IAG's valuation remains compelling, trading at 10.4x 2026E EPS and 5.4x EV/EBITDA, both well below sector medians despite strong growth prospects.Operational improvements, debt reduction, and aggressive share repurchases ($400–$500M planned) position IAG for further upside if gold prices hold.Given overbought technicals and gold price risk, IAG is now rated 'HOLD' despite positive fundamentals and the future potential long-term growth from the Nelligan Mining Complex. Liudmila Chernetska/iStock via Getty Images I am continuing coverage of IAMGOLD (IAG)(IMG:CA), which I last wrote about back in June 2025. The stock increased 194% since then as compared to the S&P 500's (SPY) 15% gain. The company just reported This article was written byDavid Zanoni11.97K FollowersFollowDavid focuses on growth & momentum stocks that are reasonably priced and likely to outperform the market over the long-term. He is a long term investor of quality stocks and uses options for strategy. David told investors to buy in March 2009 at the bottom of the financial crisis. The S&P 500 increased 367% and the Nasdaq increased 685% from 2009 through 2019. He wants to help make people money by investing in high-quality growth stocks.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. The article is for informational purposes only (not a solicitation or recommendation to buy or sell stocks). David is not a registered investment adviser. Investors should do their own research or consult a financial adviser to determine what investments are appropriate for their individual situation. This article expresses my opinions, and I cannot guarantee that the information/results will be accurate. Investing in stocks involves risk and could result in losses.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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