A streamer doesn’t mine gold, instead it buys contracts to sell other producer’s gold output. The lowest P/E over the last five years is 20, but P/E can easily climb well above 50 in this stock. Sales have increased steadily over the last nine years, and EPS has increased since 2015 with the exception of 2018 when EPS was negative. Gold Fields has been a steady performer recently, increasing sales since 2016 and EPS since 2019. The company has been steadily raising sales since 2015 with only a few minor hiccups. EPS has been positive the last four years, rising overall, but lower in 2022 vs 2021.
Meanwhile, inflation in labor, fuel, and other costs is pushing up the cost curve and affecting gold miners’ margins. Finally, investors who don’t want to try to identify the best individual gold mining stocks can consider buying shares in gold ETFs, which are more convenient and cost-effective options for investing in gold stocks. A gold ETF offers broad exposure to the sector by owning either shares of gold mining companies or physical gold.
Prior to writing about the world of finance, Shrilekha worked as an equity research analyst for a bulge-bracket client in investment banking, Credit Suisse. Her sole objective is to help investors make better and informed decisions. Her core competency lies in analyzing stocks across different sectors, from technology to mining, and banking to oil and gas. She holds a postgraduate degree in finance from ICFAI Business School, Pune, and is currently on her way to becoming a Certified Financial Planner. Shrilekha has been writing for TipRanks (opens in new tab) since January 2021. There are several reasons why OR is on this list of the best gold stocks to buy, including its strong fourth-quarter results.
For other static pages (such as the Russell 3000 Components list) all rows will be downloaded. For reference, we include the date and timestamp of when the list was last updated at the top right of the page. Each stock shows the company description, along with key statistics and a link to view the entire Profile. This industry includes producers of gold like Barrick Gold Corporation (ABX).
Gold Fields (NYSE:GFI)
The asset typically has a low correlation with the stock, bond, and crypto markets, so it’s prudent to invest in the best gold stocks now. Top-rated Canaccord Genuity analyst Carey MacRury remains upbeat about AEM stock with a Buy rating and a Street-high price target of $66.80. The analyst’s price target implies an upside potential of more than 41% for one of Wall Street’s best gold stocks. WPM is the first of the Strong Buy-rated gold stocks featured here, thanks to eight Buys and just one Hold ratings among analysts who have released notes on the stock over the past three months.
- The company has posted positive EPS every year since 2015, while sales have been increasing overall since 2018 (slight dip in 2021 versus 2020).
- The company’s dividend yield is currently around 3.0%, but the dividend amount fluctuates each year.
- Though we believe the information provided herein is reliable, we do not warrant its accuracy or completeness.
- AngloGold Ashanti is based in Johannesburg, South Africa, and the company operates gold mines in Africa, Australia and the Americas.
- By focusing on operating large mines with significant remaining resources, Barrick can produce gold at a relatively steady pace for years.
The current reading of 34.3 is one of the lowest readings in the last decade. It pays a 1% dividend, and has steadily increased the dividend each year for well over a decade. RGLD pays a 1.3% dividend and the dividend has increased every year since 2016. The company’s dividend yield is currently around 3.0%, but the dividend amount fluctuates each year.
The Impact of the U.S. Dollar on Gold Stocks
AngoGold has a more modest earnings forecast than the companies above, but it also has a stronger record of increasing EPS. The company has posted positive EPS every year since 2015, while sales have been increasing overall since 2018 (slight dip in 2021 versus 2020). Over the last decade, the stock has traded in a large range between roughly $8 and as high as $35. Torex Gold is a Canadian company that primarily operates in Mexico. The shares trade on the Toronto Stock Exchange, and they also trade in the over-the-counter market (OTC) in the U.S. under symbol TORXF. Dollar strengthening as a safe haven or fear of a more hawkish Fed?
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Zacks Industry Rank Education — Learn more about the Zacks Industry Rank
There are many benefits to buying gold stocks instead of the physical metal to reap the potential rewards of investing in gold. Gold companies can potentially generate higher total returns than an investment in physical gold. That’s because these companies can expand their production and reduce costs. Rising earnings can help drive stock prices up faster than the price of gold. That aside, one of the best ways to invest in the gold market is through gold mining companies.
Although the U.S. dollar and gold often have an inverse relationship, both can move in the same direction. For example, during periods of global uncertainty, both assets may rise as investors flock to save haven investments. Due to its finite supply, gold is seen as a hedge against inflation, while the dollar’s status as the global reserve currency makes https://business-oppurtunities.com/medical-coding-career-guide-step-by-step-guide-to-become-a-medical-coder/ it sought after during times of risk aversion. The share prices of gold stocks do not directly track the day-to-day price of gold in commodities markets, but their revenues are correlated with the gold prices. Investors who own gold stocks aim to benefit from changes in the price of gold without having to own or store physical gold themselves.
Nevertheless, with a dividend yield of 3.1% and KGC stock trading at multi-year lows, you have a long-term winner poised for big gains ahead. These results reinforce my earlier point about the low correlation of yellow metals with capital markets. Having said that, the markets are still remarkably volatile, pushing the need for investments in safe-haven assets, including these best of the best gold stocks. Here, we explore five gold stocks that might be worth a closer look. With the exception of Wheaton and Franco-Nevada, these top holdings are the world’s largest gold mining companies. Agnico vaulted up the list in 2022 by completing its merger with fellow gold miner Kirkland Lake Gold.
Kinross has the highest unit costs of the gold miners that we cover. Its average AISC of roughly $1,300 per gold equivalent ounce in 2022 places Kinross at around the 55th percentile of the gold cost curve. We forecast Kinross’ attributable production to modestly decline to about 1.8 million gold equivalent ounces in 2027. Kinross’ Paracatu mine in Brazil and Tasiast mine in Mauritania account for more than half of its midcycle production in 2027. Funds that emphasize investments in small/mid-cap companies will generally experience greater price volatility. Diversification does not eliminate the risk of experiencing investment losses.
Barrick Gold lands in second place on this list of top gold producers. The company has been active on the M&A front in the last five years — in addition to merging its Nevada assets with Newmont in 2019, the company closed its acquisition of Randgold Resources the prior year. The firm holds significant operations in North and South America, as well as Asia, Australia and Africa. Similar to the other names mentioned in this article, shares of RGLD stock have surged in the last month of trading by 22.15%. Additionally, this past Thursday, RGLD stock closed the day trading day up 1.11% at $137.92 a share.
However, similar to Newmont and Barrick, we don’t think its unit costs are low enough to justify a moat. We forecast Agnico Eagle’s gold production to be about 3.6 million ounces in 2027. Detour Lake, Canadian Malartic, Meadowbank, Meliadine, and LaRonde account for more than 70% of Agnico Eagle’s midcycle production in 2027. In the third quarter, the precious metals delivered financial results in line with consensus estimates.
The company does not operate mines, develop projects, or conduct exploration. Franco-Nevada’s short-term financial performance is linked to the price of commodities and the amount of production from its portfolio of producing assets. Its long-term performance is affected by the availability of exploration and development capital.
2 The Premium/Discount is the amount (stated in dollars or percent) by which the selling or purchase price of an ETF is greater than (premium) or less than (discount) its face amount/value or net asset value (NAV). Another element of its bull case is its solid dividend profile, where payouts have grown by seven years with a yield of 3.3%. In early 2023, Zijin presented its revised three year plan through 2025, as well as its 2030 development goals, one of which is to move up the ranks to become a top three to five producer of gold and copper.
Meanwhile, late last month, Newmont Corporation announced it has completed the sale of its common shares of Triple Flag Precious Metal Corp. on the open market for $179 million in net proceeds, after tax. The sale is part of Newmont’s strategy to maximize value for shareholders and generate cash for the business at fair value. Since the acquisition of Goldcorp in 2019, Newmont has received more than $2 billion in cash proceeds from the sale of non-core assets, strengthening the company’s investment-grade balance sheet. The gold sector has been a popular area of focus for investors seeking a safe haven for their investments.
Osisko reported Q4 revenues from royalties and streams of C$61.9 million versus C$50.7 million in the same period last year – year-over-year growth of 22.2%. Moreover, the company earned around 25,023 attributable GEOs in Q4, for a total of approximately 89,367 GEOs in 2022. This marked a 12% year-over-year increase, and a record when it comes to its quarterly and annual deliveries. BMO Capital analyst Jackie Przybylowski still believes Barrick is one of the best gold stocks. This is evidenced by a Buy rating and a price target of $23 that implies additional upside potential of 41.1% to current levels. The analyst approves of the fact that GOLD is pursuing organic growth opportunities “that will continue to drive value and provide catalysts.”
According to data from Bankrate.com, the average annual return on gold has been 0.8%. Meanwhile, the average annual return on cash as measured by one-year CDs was 0.4%. However, despite being known as an inflation hedge, it hasn’t performed as well as expected in recent years. Franco-Nevada has increased its dividend each year since its initial public offering (IPO) in 2008, hitting a milestone of 16 consecutive years in 2023.
Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns. Franco-Nevada’s streaming and royalty contracts provide it with the ability to generate lots of cash by selling the physical commodities it receives. That cash flow enables it to invest in new deals and pay a dividend. Gold has rallied over the past year to more than $2,000 an ounce as of early 2023, driven by inflationary and geopolitical concerns. However, there has been a lot of pricing volatility as investors weighed a potential recession with rising interest rates, inflation, and other factors.
- Detour Lake, Canadian Malartic, Meadowbank, Meliadine, and LaRonde account for more than 70% of Agnico Eagle’s midcycle production in 2027.
- Having said that, the markets are still remarkably volatile, pushing the need for investments in safe-haven assets, including these best of the best gold stocks.
- Gold is a cyclical commodity, and companies in the industry also tend to generate cyclical results.
- Dundee Precious Metals is a Canadian mining company based in Toronto.
- Although former President Franklin D. Roosevelt removed the gold standard in 1933, the greenback still closely correlates with gold—and subsequently gold stocks—as the metal is priced in U.S. dollars.
- This is partially offset by falling production at its Yanacocha mine, which will reach the end of its life toward the end of our five-year forecast period.
Top-rated Barclays analyst Matthew Murphy is sidelined on WPM stock with a Hold rating, but raised the price target to $42 from $40. The analyst stated that while the macroeconomic growth outlook remains better than expected, Murphy considers gold equities as a better hedge against economic upheavals than copper equities. In its Q4 and full-year 2022 results, Freeport-McMoRan states that long-term mine development activities are underway at Grasberg’s Kucing Liar deposit. The company anticipates that the deposit will ultimately produce more than 6 billion pounds of copper and 6 million ounces of gold (or 170.1 MT) between 2028 and the end of 2041. Gold Fields and AngloGold Ashanti recently joined forces to combine their Ghana exploration holdings and create what the companies claim will be Africa’s biggest gold mine. The joint venture has the potential to produce an annual average of 900,000 ounces (or 25.51 MT) of gold over the first five years.
Remember, though, that certain stocks could suffer for reasons not related to the industry. Plus, the gold industry is not perfect, and it could run into slumps from time to time. If the U.S. dollar weakens further, investors could consider redeploying more cash into gold miners and other precious metals stocks. This gleaming performance comes as gold miners are looking to cash in on higher precious metals prices. Gold and silver have gained 16% and 20%, respectively, since the start of November. The company has been one of the most profitable businesses in the sector, generating almost 50% EBITDA margins over the past five years.
Dundee Precious Metals is a Canadian mining company based in Toronto. The stock trades on the Toronto Stock Exchange, and shares also trade OTC in the U.S. under symbol DPMLF. If you are looking buy gold stocks check out the Benzinga online broker rankings. 1 Market Price is based on the midpoint of the bid/ask spread at 4 p.m. ET and does not represent the returns an investor would receive if shares were traded at other times. Gold miners are making the early lists of 2023’s market-leading stocks, lifting the Mining-Gold/Silver/Gems industry group into the top 10 out of the 197 sectors that IBD tracks.