3 Top Gold Stocks To Check Out In The Stock Market Today
As investors closely watch the developing situation between Ukraine and Russia, gold appears to be gaining traction. Accordingly, this could see investors searching for the top gold stocks in the stock market today. For one thing, in times of crisis such as these, many would opt to invest in more defensive options. 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 now.
In detail, gold prices are holding just below the $1,900 mark as Russia makes advances into eastern Ukraine. However, this would be following a decline of about 0.6% in spot gold to $1,895.02 an ounce earlier today. Commenting on this is Saxo Bank analyst Ole Hansen. Hansen notes, “We’re seeing some profit-taking in gold also because there is obviously at this point quite an elevated risk premium baked into the price of gold.” On the flip side, the likes of German banking firm Commerzbank highlights, “If the Ukraine crisis escalates further, we believe that gold will remain in demand.”
Nevertheless, amidst all of this, gold mining companies continue to thrive as well. Just last week, Royal Gold (NASDAQ: RGLD) posted solid figures across the board in its latest quarterly earnings report. Additionally, the company also increased its quarterly dividend by 17% to $1.40 per share. Among other key quarterly highlights, Royal Gold also recorded a production volume of 191,300 gold equivalent ounces (GEOs). This would be above its guidance of 180,000 to 190,000 GEOs. Elsewhere, other gold firms such as Gold Fields (NYSE: GFI) and Kinross (NYSE: KGC) could also be worth noting. As such, could one of these gold stocks be top picks in the stock market now?
Gold Stocks To Buy [Or Sell] This Week
- Newmont Corporation (NYSE: NEM)
- Barrick Gold Corporation (NYSE: GOLD)
- Agnico Eagle Mines Ltd. (NYSE: AEM)
First up, we have Newmont Corporation, one of the world’s largest gold mining companies. The company is also a producer of copper, zinc, silver, and lead. Its world-class portfolio of assets, prospects, and talents is anchored in favorable mining jurisdictions all over the globe. Notably, it is also the only gold producer to be listed in the S&P 500. NEM stock is up by about 10% year-to-date.
On February 8, 2022, Newmont also announced the acquisition of Buenaventura’s (NYSE: BVN) stake in Minera Yanacocha. “Newmont has successfully operated in Peru for more than 30 years and has deep knowledge of the asset and the value it brings to Newmont stakeholders. Buenaventura has been an exceptional partner and we look forward to continuing a strong relationship,” said Newmont President and CEO Tom Palmer. “This acquisition gives Newmont control of the Yanacocha district where we are positioning the sulfides project for profitable production and value generation for decades to come. We are committed to continuing to be a catalyst for sustainable development in Peru by working closely with communities in the Cajamarca region and the Peruvian government.”
On top of that, Newmont also updated its 2022 and long-term capital outlook, with a total attributable capital of $2.32 billion in 2022. Today, the company also announced that its Board of Directors has declared a dividend of $0.55 per share for the fourth quarter of 2021. Given all of this, will you consider NEM stock a buy?
[Read More] 4 Top Defensive Stocks For 2022
Barrick Gold Corporation
The Barrick Gold Corporation is one of the world’s most valued gold mining businesses. It also commits to finding and developing assets all over the globe and is focused on high-margin, long-life operations and projects. It has gold mines in Nevada and Canada among others. GOLD stock currently enjoys year-to-date gains of over 23%.
On February 16, 2022, the company reported its fourth-quarter and full-year 2021 financials. The company delivered on its guidance and continues to open new exploration frontiers. It also says that its Nevada Gold Mines achieved its highest quarterly production since its formation and also saw strong fourth-quarter performance for Lumwana with Jabal Sayid at the top end of production guidance range. Barrick Gold also reported a net earnings per share of $0.41 for the quarter. Impressively, it also produced 1.2 million ounces of gold during the quarter.
Furthermore, the company declared a dividend of $0.10 per share for the fourth quarter of 2021 that will be paid on March 15, 2022, to shareholders of record at the close of business on February 28, 2022. This would represent an increase of 11% year-over-year of the company’s dividend. All things considered, will you add GOLD stock to your portfolio?
Agnico Eagle Mines Ltd.
Following that, we will be taking a look at Agnico Eagle Mines, or AEM for short. Similar to our previous two entries, the Canadian firm mainly identifies as a mining company. As you can imagine, gold is AEM’s core mining focus. For a sense of scale, the company’s operations span Canada, Finland, and Mexico. Moreover, AEM also has exploration and development activities extending to the U.S. and Colombia as well.
Overall, AEM stock could be among the major names to consider in the gold stock trade now. Notably, the company recently completed its merger transaction with Kirkland Lake Gold (KLG) earlier this month. Through the all-stock deal, the combined company now operates as AEM. Following this, AEM currently has a market capitalization of over $24 billion. The question on investors’ minds now could be, how will this merger benefit AEM? Well, to point out, KLG did post record quarterly figures in its latest earnings call last month.
Diving in, the company saw record consolidated production volumes in the latest quarter. It produced 380,742 ounces of gold, a 3% year-over-year increase. On top of that, KLG also saw record quarterly and full-year production at its Detour Lake mine. After pairing all this with solid performances across KLG’s Fosterville and Macassa mines, investors could be seeing more value in this merger. With all this in mind, would AEM stock be a buy for you?