„Authorized participants“ may trade directly with the Fund, typically in blocks of 10,000 shares. But consider that the U.S. dollar, as traded by the Invesco U.S. Dollar Index Bullish Fund (UUP) ETF, has lost 8.5% over the same period. Precious metals are priced in U.S. dollars and greenback weakness normally correlates to precious metals strength.
You can use Barchart’s Top Gold Stocks list to find investment opportunities and compare stocks involved in this volatile industry. With gold prices on the rise, here’s Morningstar’s take on several gold mining stocks today. Shrilekha Pethe has been extensively covering and writing about the U.S. financial markets since 2015.
Picking the best gold stocks
The company expects that this year and 2024 are likely to be the years when capex will be at its peak. Newmont posted revenues of $3.2 billion in Q4, a 6% year-over-year decline due mostly to lower realized gold prices. Adjusted earnings came in at $1.85 per share versus $2.96 in the same period last year. One of the catalysts behind investing in gold is that the precious metal has traditionally been considered a safe haven for investors in times of recession as it provides an effective hedge against inflation. Prices in the U.S. are staying stubbornly high, and the Federal Reserve has been aggressively hiking interest rates to counter the red-hot inflation.
The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating indiv idual securities. Investing in gold is always a good investment if you are looking to balance your portfolio. 3 “Other expenses” are based on estimated amounts for the current fiscal year and are calculated as a percentage of the Fund’s net assets. Other gold and silver miners are also forming bases to keep an eye on. Perhaps the biggest obstacle hindering Gold Fields was South Africa’s energy crisis last year due to Eskom’s collapse.
At the same time, Franco-Nevada’s agreements position it to profit as its mining partners complete exploration and expansion projects. The stock listing in Canada (SSRM.TO) has a 3% per year EPS growth estimate over the next five years. For the listing in the U.S. (SSRM) analysts expect -27% yearly growth over the next five years. AngloGold Ashanti is based in Johannesburg, South Africa, and the company operates gold mines in Africa, Australia and the Americas.
Top 10 Gold-mining Companies (Updated
Adjusted earnings came in at 20.8 cents per share, a decline of 31.6% year-over-year, but inline with estimates. Revenues fell 18.6% year-over-year to $218.8 million, but missed Street estimates by $17.2 million. The drop in revenues was a result of a 12% decline in the average realized gold equivalent price and a 7% decrease in the number of gold equivalent ounces (GEO) sold to 6,620 in Q3. If you plan to diversify your portfolio in light of recent events, investing in gold stocks could be a good choice. Gold stocks not only track the movements of gold prices that tend to rise in uncertain times, but they also generally gain value in a rising stock market.
- Coming in fourth on this top gold-mining companies list is AngloGold Ashanti, which produced 85.3 MT of gold in 2022.
- So buying gold stocks is a great way for individual investors to get the exposure they need in their portfolios.
- As a precious metal, gold has long been considered a reliable store of value, and its price is often seen as a barometer of global economic and political uncertainty.
The high solvency ratio means the company has more than enough cash flow to cover its debts. View the latest top Barchart Exclusives stories, with a focus on today’s important stocks, ETFs, and commodity market news. Studies have shown that roughly half of a stock’s price movement can be attributed to a stock’s industry group. In fact, the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1. By focusing on the top stocks within the top 50% of Zacks Ranked Industries, you can dramatically improve your stock picking success. You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer.
It further expanded its scale in 2023 by acquiring Yamana Gold’s Canadian assets as part of Pan American Silver’s (PAA -2.48%) acquisition of that company. Franco-Nevada and Wheaton are the leading gold streaming and royalty companies. Franco-Nevada is one of the few gold companies that can boast a steadily rising share price over the last decade. That said, FNV is in a range between $169 and $106 since 2020, and the price is currently in the middle of this range.
They benefit from rising gold prices, as well as their ability to increase production and reduce costs. Consequently, top gold mining companies can often outperform the price of gold. The top-tier gold miners have low cost structures, manageable debt levels, and limited exposure to risky mining projects.
Top Gold Stocks
As a precious metal, gold has long been considered a reliable store of value, and its price is often seen as a barometer of global economic and political uncertainty. In recent years, the price of gold has been volatile, driven by a range of factors, including interest rates, inflation, currency movements, and geopolitical tensions. So buying gold stocks is a great way for individual investors to get the exposure they need in their portfolios.
While gold prices have fallen from records in March, they rebounded since early November due to central-bank accumulation, increasing jewelry purchases by consumers, and expectations of slower Fed rate hikes. Dividend yield was not a selection factor, yet all the stocks on the list but one pay a dividend. This helps show the companies have a strong enough financial position to pay a dividend. Since mid-2020, SSR’s share price has been ranging between $33 and $17, and the stock is currently near the bottom of that range.
Any upside for gold from here would certainly benefit gold stocks and gold ETFs, both of which tend to move in tandem with the commodity. Nevada Gold Mines is not Barrick’s only asset that is a top-producing gold https://business-oppurtunities.com/why-is-network-marketing-so-lucrative/ operation. The major gold company also holds the Pueblo Viejo mine in the Dominican Republican and the Loulo-Gounkoto mine in Mali, which produced 22.2 MT and 21.3 MT, respectively, of the yellow metal in 2022.
Their profits rise when gold prices are high and decline when gold is cheap. Like FNV—the other gold streamer on the list—Royal Gold’s share price has risen steadily over time. It has the lowest expected annual forward earnings estimate on the list, but it has generally been a steady performer for more than a decade. Torex has the highest estimated five-year EPS growth of the stocks included in this list. The company’s earnings can be erratic, yet EPS has been in an overall uptrend since 2018. Sales have been increasing since 2016 (allowing for up to a 10% drop in any given year if sales increase the next year once again).
5 Popular Ways to Invest in Gold: Which One is Right for You? – Yahoo Finance
5 Popular Ways to Invest in Gold: Which One is Right for You?.
Posted: Mon, 01 May 2023 07:00:00 GMT [source]
We think the shares of Newmont and Barrick are undervalued, trading at discounts to fair value of 10% and 8%, respectively, while Agnico Eagle trades at an 8% premium and Kinross appears fairly valued. Spot gold prices have risen recently to around $2,000 per ounce on fears regarding the stability of the financial system as well as a potential recession. While higher gold prices are a tailwind, concerns remain over rising interest rates, which increase the opportunity cost to hold gold, and cost inflation. Gold investment lacks cash flows for owners, and rising yields make bonds relatively more attractive.
The analyst’s price target implies an upside potential of 24.4% at current levels. A stronger dollar has weighed on gold futures, but analysts see plenty of potential for these top-rated gold stocks. Better known for its copper production, Freeport-McMoRan produced 56.3 MT of gold in 2022. The vast majority of that production originates from the company’s Grasberg mine in Indonesia, which ranks as the world’s second largest gold mine by production. According to Newcrest, it has one of the largest group gold ore reserves in the world. With an estimated 52 million ounces of gold ore reserves, its reserve life is approximately 27 years.
For a long-term stock investment, this is one of the better choices due to the steady cash flow the company brings in and the generally rising sales, EPS and share price. At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.27% per year. These returns cover a period from January 1, 1988 through April 3, 2023.
„These [macro] headwinds look to have largely run their course with inflation and the economy slowing,“ the analyst said. „Gold and gold equities have more room to run ahead of a potential Fed pause and with a non-trivial chance of a recession emerging.“ In addition, the company announced a quarterly dividend of 10 cents per share. Barrick has also announced a new stock buyback program worth $1 billion. Last year, GOLD returned around $1.6 billion to its investors through stock buybacks and dividends. Newmont (NEM (opens in new tab), $44.22), founded in 1921, is a large producer of gold, copper, silver, zinc and lead.
Shares of AEM have not fared well in the past month, sinking by more than 12%, as the mining company warned of higher mining costs as a result of „inflationary pressures on labor, electricity, fuel and consumables.“ The company currently has a pipeline of projects involved in exploring and developing existing mineral deposits in the U.S. and Colombia to improve the gold and silver production profile. Top-rated Canaccord Genuity analyst Carey MacRury is bullish on the stock with a Buy rating and a price target of $17.07. The analyst’s price target implies an upside potential of 26.4% at current levels.
MacRury isn’t alone in his bullish outlook, with seven of eight analysts surveyed by TipRanks rating OR stock a Buy. See what else the pros have to say about OR on TipRanks (opens in new tab). Considering this scenario, the analyst anticipates Osisko to ramp up production by 37% from 2022 to 2027 as it begins output or increases it at its projects in San Antonio, Cariboo and Windfall. Overall, the Street is cautiously optimistic here, with six Buys and three Holds among analysts that have sounded off over the past three months.
According to the most recent US Geological Survey data, gold production increased by approximately 2 percent in 2021, and by a mere 0.32 percent in 2022. China, Australia and Russia were the top three countries to produce gold last year. These are the gold stocks with the lowest 12-month trailing P/E ratio. If you’re serious about purchasing gold stocks, discuss your ideas and strategy with a financial advisor.
Whether you choose to buy physical gold or gold stocks depends upon your own goals and requirements. From your brokerage account, choose the stock you want to buy, the price at which you want to purchase it and how many shares of the stock you wish to own. Once you have decided on these factors, you can purchase the stock. Gold mining is the practice of extracting gold ore from the earth and processing it into gold bullion. Gold streaming is the provision of upfront financing to gold miners in exchange for the option to buy finished gold bullion at a discount in the future.
- While gold prices have fallen from records in March, they rebounded since early November due to central-bank accumulation, increasing jewelry purchases by consumers, and expectations of slower Fed rate hikes.
- See what else the pros have to say about OR on TipRanks (opens in new tab).
- This guidance assumes that production will start at the San Antonio, Cariboo, Windfall and Back Forty projects.
Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations.