While the precious metals sector has been disregarded by many as an ancient relic, gold stocks to buy have represented an incredibly popular topic as of late. That’s been helped by the fact that recently, the yellow metal reached an all-time high. While the sector has faded somewhat, this could be a healthy correction before another big move.
Indeed, gold might not be done with its rally thanks to the fear trade. Essentially, the fear trade represents a desire to acquire safe-haven assets. Historically, there has never been a safer asset than precious metals. Subsequently, people from big-box retailers to central banks have started acquiring physical gold bullion.
It might seem irrational to some but there’s a reason behind the surge. Geopolitically, we have flashpoints raging in many parts of the world. Economically, rising concerns exist about debt loads, delinquencies and overall social stability. Add in a contentious U.S. election cycle and the fear trade has plenty of justification. With that in mind, below are gold stocks to buy.
Kinross Gold (KGC)
Based in Toronto, Canada, Kinross Gold (NYSE:KGC) focuses on the acquisition, exploration and development of gold properties. Primarily, these projects are located in the U.S., Brazil, Chile, Canada and Mauritania. Analysts rate KGC stock a consensus strong buy with an $8.45 price target, implying almost 5% upside potential. However, the high-side target lands at $10.06.
Financially, the justification for the strong endorsement centers in part on Kinross’ earnings performances. Between the second quarter of 2023 to Q1 2024, the company’s average positive earnings surprise hit 42.93%. Over the trailing 12 months (TTM), the miner’s net income reached $433.1 million on revenue of $4.39 billion. Presently, its quarterly revenue growth (year-over-year) rate stands at 16.4%.
For fiscal 2024, covering experts believe that earnings per share will expand 13.6% to 50 cents. On the top line, sales could rise by 10.1% to hit $4.67 billion. Further, the blue-sky revenue target is $4.89 billion. KGC has already gained over 36% and its technical profile appears healthy. Thus, it’s one of the gold stocks to buy.
Equinox Gold (EQX)
Headquartered in Vancouver, B.C. (Canada), Equinox Gold (NYSEAMERICAN:EQX) focuses on the exploration acquisition, development and operation of mineral properties in the Americas. Primarily, it explores gold and silver deposits. Analysts peg EQX stock as a moderate buy with a $6.90 average price target, implying almost 24% upside potential. The most optimistic target calls for $8.78 per share.
While Equinox is a bit more hit or miss than Kinross Gold, it can deliver the goods. In the past four quarters since Q1 2024, the company’s quarterly surprise came out to 130.73%. Over the TTM period, Equinox posted a net loss of $31.27 million on sales of $1.1 billion. Right now, its quarterly revenue growth rate comes in at 3.1%.
However, this circumstance may change dramatically for the better. For fiscal 2024, experts anticipate a 400% increase in the bottom line to hit 35 cents EPS. On the top line, analysts are calling for 49.3% growth to land at $1.63 billion. Further, the high-side target is seeking $1.7 billion. It’s one of the enticing gold stocks to buy.
Wheaton Precious Metals (WPM)
Also based in Vancouver, BC, Wheaton Precious Metals (NYSE:WPM) specializes in the streaming business model. Rather than directly mining for gold, silver and other valuable metals, Wheaton pays mining enterprises upfront cash. In exchange, the company will take either a portion or all of the metals produced. Analysts rate WPM stock a strong buy with a $59.94 average price target.
It’s a confident endorsement and it’s supported by Wheaton’s consistent financial print. Between Q2 2023 and Q1 2024, the company’s average positive earnings surprise clocked in at 12.98%. Over the TTM period, Wheaton posted net income of $590.29 million on revenue of $1.1 billion. Currently, its quarterly revenue growth stands at 38.4%.
While this rate might decelerate, it may not do so by much. For fiscal 2024, experts anticipate EPS of $1.31, implying 11% YOY growth. On the top line, sales could reach $1.23 billion, implying 21% YOY growth. The blue-sky revenue target calls for $1.35 billion, making WPM an enticing idea for gold stocks to buy.
Franco-Nevada (FNV)
Hailing from Toronto, Franco-Nevada (NYSE:FNV) operates as a gold-focused royalty and streaming company. Royalty firms are similar to streaming. However, rather than taking a cut of the metal production in exchange for upfront capital, royalties involve taking a portion (or all) of the generated revenue. Analysts peg FNV stock as a consensus moderate buy with a $143.01 average price target, implying over 17% growth.
As with the other gold stocks to buy on this list, Franco-Nevada has impressed investors with its consistent performances. In the past four quarters since Q1 2024, the company’s average positive earnings surprise came out to 5.13%. During the TTM period, Franco-Nevada incurred a net loss of $478.4 million on revenue of $1.2 billion. Presently, its quarterly revenue growth rate sits at a loss of 7.1%.
It’s a tricky matter since analysts project a decline in fiscal 2024 for both earnings and sales. However, in fiscal 2025, EPS could rise to $3.90, better than last year’s print of $3.64. Moreover, revenue could hit $1.31 billion, a boost from last year’s haul of $1.22 billion.
New Gold (NGD)
Another Toronto-based enterprise, New Gold (NYSEAMERICAN:NGD) bills itself as an intermediate gold mining firm. It develops and operates mineral properties in Canada, primarily exploring gold, silver and copper deposits. Analysts rate NGD stock as a consensus moderate buy with an average price target of $2.21, implying over 12% upside. The high-side target reaches $2.56.
Financially, New Gold is promising but is also liable for some misses. For example, it posted EPS of 2 cents against an expected target of breakeven. However, in Q4, the company incurred a loss per share of 1 cent when experts targeted EPS of 2 cents. Over the TTM period, New Gold incurred a net loss of $76.2 million on sales of $777 million.
Currently, its quarterly revenue growth rate sits at 4.7% below parity. However, that could change for the better. For fiscal 2024, experts believe that EPS could expand by almost 86% to hit 13 cents. On the top line, sales could rise by 18.4% to land at $931.39 million. Further, the blue-sky target calls for $963.78 million. It’s one of the gold stocks to buy if you wish to speculate.
McEwen Mining (MUX)
Yet another Toronto-headquartered entity, McEwen Mining (NYSE:MUX) engages in the exploration, development, production and sale of gold and silver deposits in the U.S., Canada, Mexico and Argentina. It’s one of the riskier ideas among gold stocks to buy because of its smaller market capitalization of $1.37 billion. Still, analysts peg MUX as a unanimous strong buy with a $13 average price target.
At first glance, the vote of confidence might seem misguided. Although McEwen posted quarterly beats in Q2 and Q3 last year, its past two earnings disclosures missed experts’ marks. In the past four quarters, the average quarterly surprise came out to 136.58% below breakeven. However, in the TTM period, net income landed at $77.99 million on sales of $172.71 million.
For fiscal 2024, analysts anticipate a loss of $1.07, which is a significant improvement from last year’s loss of $3.15. Moreover, revenue could hit $301.47 million, which would imply 32.6% growth from 2023. Given the tremendous potential upside and the unanimous support, MUX ranks among the gold socks to buy.
US Gold (USAU)
Based in Elko, Nevada, US Gold (NASDAQ:USAU) is a tiny enterprise. Per data from Yahoo Finance, its public profile shows only four full-time employees. The business engages in the exploration and development of gold and precious metals in the U.S. It also explores copper and silver deposits. While extremely risky, USAU is up over 40% since the beginning of the year.
Here’s the deal with US Gold. It features a market cap of less than $64 million. Therefore, it’s treading water above the nano-cap threshold, which is around $50 million. That said, this diminutive profile affords significant share price mobility. That’s particularly intriguing because, for this year, USAU has earned two buy ratings. The price targets are $11 and $15.25.
To be clear, the company is a pre-revenue enterprise. Therefore, it’s difficult to make heads or tails out of it. Nevertheless, with the endorsement of two experts, it’s possible that USAU can strike gold (literally). If so, shares can skyrocket. Keep this on your radar if you like gambling.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
