Top Gold Stocks To Watch In The Stock Market Now
No matter how you slice it, Bitcoin has been a top-performing asset in the market this year. And that’s because there are many investors who view Bitcoin as digital gold. They see the cryptocurrency as a way to hedge against fiat currency inflation due to aggressive fiscal and monetary policies. For this reason, cryptocurrencies are often competing with gold and precious metals for capital that goes to safe-haven assets. Now, it seems to me that it’ll be another volatile week for cryptocurrencies. As a result, some investors may be now turning to gold stocks.
What better ways to invest in gold other than gold stocks? That may be why we saw some of the top gold stocks rallying through the first half of 2020. If you’re wondering where to start, here is a list of the best gold stocks to consider buying in the stock market as the gold price is near a four-month high.
Best Gold Stocks To Buy [Or Sell] Right Now
- Barrick Gold (NYSE: GOLD)
- Newmont Corporation (NYSE: NEM)
- Kinross Gold (NYSE: KGC)
- Sibanye-Stillwater Ltd. (NYSE: SBSW)
- Kirkland Lake Gold (NYSE: KL)
Barrick Gold has grown to be one of the largest gold producers in the entire world. It explores and develops various mines, and produces gold. The company operates out of the United States, Canada, Argentina, and the Dominican Republic among others. Barrick also holds an interest in copper mines located in Chile. Copper is another metal that has been performing well. In essence, the company is focused on high-margin, long-life operations and projects clustered in the world’s most prospective gold districts.
Earlier this month, Barrick Gold released its first-quarter results of 2021 where total sales came in 8.6% higher year-over-year to $2,956 million. Currently, the company is on track to achieve its production targets. The company’s CEO Mark Bristow also mentioned that Bitcoin and other cryptocurrencies are nothing more than bubbles and will never replace gold. If you think what he said is true, would you invest in GOLD stock instead of Bitcoin and other cryptocurrencies?
Newmont is one of the world’s largest gold producers and a producer of copper, silver, zinc, and lead. The company’s world-class portfolio of assets spans many continents. The Colorado-based company is the only gold producer that is listed in the S&P 500 index. Boasting over 31,600 employees and the largest gold reserves in the world, the company is truly a force to reckon with in the industry.
From its first-quarter result released at the end of April, the company’s revenue came in 11% higher to $2.9 billion. This represents an increase of nearly $300 million from the prior-year quarter, driven largely by higher metal prices. In addition, the company’s net adjusted income for the quarter was $594 million, an improvement from $326 million in the prior-year quarter. More impressively, it ended the quarter with $5.5 billion of consolidated cash. Apart from having a solid balance sheet, its dividend yield at 3.3% is also among the best, making NEM stock one of the top gold stocks to buy.
Kinross Gold Corporation is a mining corporation that explores, acquires land, and develops gold properties worldwide. Some of its countries of operation include the United States, Canada, Brazil, Chile, Russia, Ghana, and Mauritania. It will extract and process gold ores and then produce and sell the yellow metal. One major reason to like Kinross Gold is the production guidance. For this year, the company expects to deliver production of 2.1 million oz. But gold production could increase to 2.9 million oz by the 2023 financial year.
The company reported its first-quarter results on May 11. In it, Kinross delivered a 51% year-over-year increase in adjusted net earnings, with margins increasing 25% to $1,031 per ounce sold. The company’s management also mentioned that it is well-positioned to generate strong cash flow throughout the year. Besides, Kinross remains on track to meet its annual guidance. It’s also worth noting that the company acquired a 70% stake in the Fort Knox project. Considering there is ample room for shareholder value creation, should investors include KGC stock on their watchlist?
Sibanye-Stillwater possesses a diverse portfolio of gold and platinum operations in the U.S. and Southern Africa. The company is the world’s largest primary producer of platinum and rhodium and a primary producer of palladium. To those unfamiliar, Sibanya was formed in 2013 when Gold Fields (NYSE: GFI) spun off some mines in South Africa. Following the disposition, Sibanya has taken up numerous acquisitions to grow. A strategy it often employs is acquiring troubled mines before commodity prices recover. Evidently, it has worked reasonably well for the company in the past.
From its first-quarter fiscal report, the company posted a 78% increase in first-quarter core profit, driven by higher metals prices and improved operational performance. Some of you may be familiar with palladium as a cheaper alternative to platinum for manufacturing catalytic converters. Of course, the company may continue to benefit assuming that internal combustion engines remain a mainstay in vehicles. Thus, if you believe that electric vehicles are still very far from going mainstream, then a small exposure to SBSW stock wouldn’t hurt.
[Read More] 4 Top EV Stocks To Watch Right Now
Kirkland Lake Gold
Canadian gold miner, Kirkland Lake Gold is one of the best gold stocks to buy in the stock market. The company kicked off 2021 on a solid note and was among the few gold stocks that topped its production and cost guidance as seen from its latest quarterly report. Investors love KL stock because it’s a low-debt, free-cash-flow positive gold mining company that offers dividends. There’s not much reason not to like Kirkland when it comes to this gold stock.
Kirkland Lake Gold reported its first-quarter earnings on May 6. From its fiscal report, revenue came in at $551.8 million, similar to revenue of $554.7 million in the prior-year quarter. Meanwhile, the company’s net earnings for the quarter totaled $161.2 million compared to $202.9 million in the first quarter of 2020. While these numbers may be less satisfactory, its gold production for the first quarter totaled 302,487 ounces, which exceeded the guidance range of 270,000-290,000 ounces issued on February 25. Considering its solid fundamentals, would KL stock be an ideal gold stock to have in your portfolio?