Should Investors Be Paying Attention To These Gold Stocks Right Now?
Gold stocks are a type of investment that allows investors to buy shares in gold mining companies. These stocks can provide exposure to gold prices without the need to own physical gold. Gold stocks tend to be more volatile than gold bullion, but they can offer greater upside potential. Not to mention, gold is also a go-to hedge against inflation for some investors. With high inflation on the minds of many this year, gold stocks could be an attractive play in the stock market now.
For most investors, the easiest and quickest way to get exposure to gold is through a mutual fund or ETF that invests in a basket of gold-related assets. Additionally, these funds provide instant diversification, and can be bought and sold just like any other stock or ETF. However, before investing in any fund, it’s important to do your homework and make sure you understand how the fund works and what fees it charges.
If you’re interested in taking a more hands-on approach, gold mining stocks should have your attention. This approach offers the potential for higher returns, but it also comes with more risk. Because these companies are directly involved in extracting and processing gold, their fortunes are closely tied to the price of gold. These are companies such as Rio Tinto PLC (NYSE: RIO), and Barrick Gold Corporation (NYSE: GOLD) As such, their stock prices can be highly volatile. So if you’re thinking about investing in this sector, here are three gold stocks for your August 2022 watchlist.
Best Gold Stocks To Watch This Week
Royal Gold (RGLD Stock)
Starting us off, we have Royal Gold (RGLD). Royal Gold is a precious metals stream and royalty company engaged in the acquisition and management of precious metal streams, royalties, and similar production-based interests. As of June of this year, the Company owned interests on 185 properties on five continents, including interests on 41 producing mines and 19 development stage projects. Royal Gold has found itself in the stock market news headlines this week after the company reported its second-quarter earnings results.
In detail, Royal Gold missed on earnings and revenue this quarter. Specifically, they posted earnings of $0.81 per share on revenue of $146.4 million. The consensus earnings expectation was $0.91 per share on revenue of $156.0 million. Additionally, Revenue dropped 12.8% compared to the same quarter the year prior. “Royal Gold’s portfolio performed well in the second quarter,” commented Bill Heissenbuttel, President and CEO of Royal Gold. “While we saw lower volumes at some assets, these were not unexpected and our overall financial results were solid. Our typical high and consistent margins remained robust in the quarter, demonstrating again the resilience of our business model in a high inflation environment.” All in all, is RGLD stock a good buy at these price levels?
Newmont Corp (NEM Stock)
Next, we have Newmont Corp (NEM). Newmont is the world’s biggest gold producer. Also, the company engages in the production of copper, silver, lead, and zinc. Its world-class portfolio of assets, prospects, and talent is anchored in favorable mining jurisdictions in many parts across the globe. For a sense of scale, Newmont has a gold reserve of nearly 92.8 million ounces, measured and indicated gold resources greater than 68.3 million ounces. As some investors may know, gold is widely viewed as a hedge against inflation.
In late July, NEM reported its second quarter 2022 earnings results. In it, the company posted earnings per share of $0.46 on revenue of $3.1 billion. Wall Street consensus earnings estimate was earnings per share of $0.60. Furthermore, revenue dropped 0.2% versus the same quarter a year ago. As well as, they declared second quarter dividend of $0.55 per share, consistent with the last seven quarters.
“Newmont delivered a solid second quarter performance, producing 1.5 million gold ounces and generating $514 million in free cash flow. Through our industry-leading portfolio of assets and projects, our proven integrated operating model, our balanced and disciplined approach to capital allocation and our values-driven commitment to our purpose of creating value and improving lives through sustainable and responsible mining,” commented Tom Palmer, Newmont President, and Chief Executive Officer of Newmont. Considering this, would you add NEM stock to your list of top gold stocks to watch now?
Sibanye-Stillwater (SBSW Stock)
Lastly, Sibanye-Stillwater (SBSW) is a multinational precious metals mining company with headquarters in South Africa. In brief, it is a leading mining group with a diverse portfolio of platinum group metals (PGM) and gold operations. Furthermore, the company has leading PGM catalytic converter recycling operations in the U.S. Also, Sibanye-Stillwater has diversified its portfolio into the battery metals sector in the Americas and Europe.
The company hasn’t been resting on its laurels. In late June Sibanye-Stillwater announced it a signed three-year wage agreement and uplifts lockout for its SA gold operations. There’s no doubt that SBSW stock has been beaten up in the last year. Shares of SBSW are down over 23% year- However, does this provide an opportunity for investors to buy this top gold stock at a discount?