In this article, we discuss the 13 most promising gold stocks according to analysts. To skip the detailed analysis of the industry, go directly to the 5 Most Promising Gold Stocks According to Analysts.
Gold has started to make noise in the stock and commodity markets again as it recently jumped to a record high. One of the main reasons behind this surge is the belief that the yellow metal is a hedge against inflation, and investors want to safeguard their money in an uncertain economic environment. Furthermore, central banks are also aggressively buying gold. The central banks added 30% of the world’s mining production to their reserves in 2023. The SVB crash and Middle-East conflict have been a growth catalyst for the precious metal in the year. Gold stocks have also reaped the rewards of rising gold prices and central bank activity. At its latest earnings call presentation, Centerra Gold Inc. (NYSE:CGAU)’s President and Chief Executive Officer, Paul Tomory, said:
“Centerra had a very strong third quarter with significant free cash flow generation, driving a substantial increase to our cash balance outperformed our expectations, producing almost 87,000 ounces in the quarter. Our 2023 consolidated gold production guidance remains on track between 340,000 and 360,000 ounces, and we expect to continue to generate significant free cash flow in the fourth quarter further increasing our cash balance by the end of the year.”
Gold has shown resilience during a high-interest rate environment, expectations that the Fed might start cutting interest rates in 2024 could be favorable for the commodity in the coming year. Lower interest rates could make cash and cash equivalents less enticing compared to gold.
The third quarter also saw the largest takeover in gold mining in 2023. Newmont Corporation (NYSE:NEM) completed the acquisition of Newcrest Mining Limited on November 6. The company acquired Newcrest for A$26.2 billion, adding five active mines and two advanced projects to the world’s largest gold mining company’s portfolio.
Some experts believe that while gold is a hedge against inflation, the statement is partially true. Gold is volatile commodity. Historically, gold has been seen to be more volatile than stocks and bonds. In a recent video, billionaire Ken Fisher explains that since the gold standard ended, gold has had lower long-term returns compared to stocks and bonds, yet it has been significantly more volatile than both. Stocks have been shown to return almost twice as much as gold with 20% lesser volatility.
Fisher further explains that gold has a very long period of losing money and then gives a short window where the prices rise remarkably. In conclusion, the billionaire believes that investors have to time their investments in gold perfectly to achieve maximum results and timing gold is trickier than timing stocks and bonds.
When it comes to gold stocks, Fisher believes that, more often than not gold, they fall into a subcategory that moves with the smaller value stocks.
Since the beginning of the fourth quarter, SPDR Gold Trust (GLD) has gained 10.23% as of December 15. We also saw during our research that Wall Street analysts were quite bullish on gold stocks. Some of the most promising gold stocks, according to analysts, include B2Gold Corp. (NYSE:BTG), SSR Mining Inc. (NASDAQ:SSRM), and Sandstorm Gold Ltd. (NYSE:SAND). If you want to check out the most promising gold stocks according to hedge funds, you can check out the 12 Most Undervalued Gold Stocks To Buy According To Hedge Funds.
13 Most Promising Gold Stocks According to Analysts
A close-up of the company's gold bars and certificates of authenticity, lit up by a spotlight.
Our Methodology
For this article, we created a list of gold stocks through the Yahoo Finance stock screener. Out of that data, we picked the stocks with the highest average analyst price target upside as of December 15. The analyst data was taken from TipRanks. We skipped the stocks that had a high number of Hold or Sell ratings.
The most promising gold stocks according to analysts are listed in ascending order of their average analyst price target upside.
13 Most Promising Gold Stocks According to Analysts
Wheaton Precious Metals Corp. (NYSE:WPM) is a well-known precious metals streaming company that develops and operates gold and silver mines.
On November 15, Wheaton Precious Metals Corp. (NYSE:WPM) reported that it agreed to acquire Orion Resource Partners’ existing metals streams and a new precious metals stream for a total of $530 million.
Wheaton Precious Metals Corp. (NYSE:WPM) is one of the most promising gold stocks according to analysts, along with B2Gold Corp. (NYSE:BTG), SSR Mining Inc. (NASDAQ:SSRM), and Sandstorm Gold Ltd. (NYSE:SAND).
White Falcon Capital Management mentioned Wheaton Precious Metals Corp. (NYSE:WPM) in its second quarter 2023 investor letter. Here is what it said:
“Precious Metals Royalty basket (Wheaton Precious Metals Corp. (NYSE:WPM), SSL, TFPM): In the current macroeconomic environment, there are many ways to ‘win’ with gold. It is remarkable that even with record positive real yields, gold is flirting with all time highs. Why? Western central banks are increasing interest rates which means that they will have to pay more interest on the record levels of debt that their government’s owe. Where will the money come from to pay the higher interest expense? The answer is simple – more debt and more money printing! We believe the gold knows this! We believe that precious metals will protect real purchasing power and act as a hedge to the portfolio when macroeconomic uncertainty arises. Owning royalty companies at reasonable valuations gives us a high quality exposure to precious metals without project or cost inflation risks inherent in a mining company.”
Alamos Gold Inc. (NYSE:AGI) is a metals and mining company that focuses on the development and exploration of gold. Alamos Gold Inc. (NYSE:AGI) has three producing mines in North America.
On November 22, Alamos Gold Inc. (NYSE:AGI) announced a quarterly dividend of $0.025, payable by December 20 to the shareholders of record on December 6. As of the December 15 market close, the stock’s dividend yield was 0.73%.
On November 7, Canaccord raised the price target on Alamos Gold Inc. (NYSE:AGI)’s stock to C$21 from C$20 and kept a Buy rating on the shares.
Agnico Eagle Mines Limited (NYSE:AEM) is a Canadian company that is involved in the exploration and development activities of mineral properties. The company works with gold, silver, zinc, copper and lead.
Over the last three months, 6 Wall Street analysts covered Agnico Eagle Mines Limited (NYSE:AEM), and all of them kept a Buy rating on the stock. The average price target of $60.83 had an upside of 12.63% as of the December 15 market close.
According to Insider Monkey’s database that tracks 910 elite hedge funds, 38 funds had investments in Agnico Eagle Mines Limited (NYSE:AEM)’s stock in the third quarter. Jean-Marie Eveillard’s First Eagle Investment Management owned 6.23 million company shares worth $283.20 million, making it the top investor in the company.
Barrick Gold Corporation (NYSE:GOLD) is a Canadian company that owns and operates gold mines in the Americas, Africa, the Middle East, and Oceania.
On December 11, Barrick Gold Corporation (NYSE:GOLD) announced that its joint venture with Newmont Corporation (NYSE:NEM), Nevada Gold Mines, has received approval from the US Bureau of Land Management for the plan of operations for its new Goldrush underground mine. The Nevada-based mine is set to start production in 2024, and it is expected to produce 130,000 ounces in 2024 and increase to nearly 400,000 ounces per annum by 2028.
According to Insider Monkey’s database, the hedge fund sentiment was positive toward Barrick Gold Corporation (NYSE:GOLD)’s stock. In the third quarter, the number of hedge funds bullish on the stock was 36, up from 32 in the previous quarter. Ken Griffin’s Citadel Investment Group was among the top stakeholders in the company. The fund increased its stake by 117% in Barrick Gold Corporation (NYSE:GOLD) to 4.61 million shares worth $67.1 million.
Newmont Corporation (NYSE:NEM) is a Colorado-based gold-mining company that also explores, produces, processes and refines silver, zinc, copper, lead, and molybdenum. It has operations in the Americas, Europe, Asia-Pacific, and Africa.
On December 14, BMO Capital lowered the price target on Newmont Corporation (NYSE:NEM)’s stock to $62 from $63 and maintained an Outperform rating. The firm highlighted a few positives of the company that it observed visiting Tanami and Boddington mines in Australia, including value-creating projects, strong practices throughout the operation, the company’s centralized corporate structure, and more.
Newmont Corporation (NYSE:NEM) was covered by 11 Wall Street analysts, and 7 kept a Buy rating on the stock. As of the December 15 market close, the average price target of $48.95 represented an upside of 19.77%.
Royal Gold, Inc. (NASDAQ:RGLD) is involved in the acquisition and management of precious metals royalties, metal streams, and similar interests. As of September 2023, Royal Gold, Inc. (NASDAQ:RGLD) owned interests in 39 producing mines and 22 development-stage projects.
On November 14, Royal Gold, Inc. (NASDAQ:RGLD) announced an increase of 6.7% in its quarterly dividend to $0.40. It is payable by January 19 to the shareholders of record on January 5. The stock’s dividend yield was 1.34% as of the December 15 market close.
On November 1, Royal Gold, Inc. (NASDAQ:RGLD) posted its Q3 non-GAAP EPS of $0.76, and its revenue jumped 5.5% year-over-year (YoY) to $138.62 million, topping the analysts’ estimates by $11.33 million.
Osisko Gold Royalties Ltd (NYSE:OR) is a Canadian company that acquires and manages precious metals and other royalties, streams, and more.
On November 8, Osisko Gold Royalties Ltd (NYSE:OR) declared a quarterly dividend of CAD 0.06, payable by January 15 to the shareholders of record on December 29. As of the December 15 market close, the stock’s dividend yield was 1.24%.
In the third quarter, 18 hedge funds held a stake in Osisko Gold Royalties Ltd (NYSE:OR)’s stock. Millennium Management was the most significant shareholder of the company, with 8.85 million shares worth $104.019 million.
Palm Valley Capital Management commented on Osisko Gold Royalties Ltd (NYSE:OR) in its first quarter 2023 investor letter. Here is what it said:
“We did not purchase any new holdings for the Fund during the first quarter. In January, we sold one position: Osisko Gold Royalties Ltd (NYSE:OR). Osisko reported record royalty and streaming revenues as it has steadily grown its portfolio of assets, which is skewed toward Canada—considered to be the highest quality jurisdiction for miners. The company recently deconsolidated the results of mining developer Osisko Development from its financials, clarifying Osisko Royalties’ business model for less familiar investors. Each quarter, we update the company’s NAV based on the underlying value of each of its key royalty and streaming interests, in addition to the net financial assets it holds. Osisko’s share price exceeded our estimate of NAV, so we sold the position.”
Pan American Silver Corp. (NYSE:PAAS) is a mining company that is engaged in several activities, mainly exploring, developing, and extracting silver and gold.
Pan American Silver Corp. (NYSE:PAAS) was covered by 7 Wall Street analysts over the last three months, and all kept a Buy rating on the stock. The average price target of $20.24 had an upside of 29.99% as of the December 15 market close.
On December 11, BMO Capital reinstated coverage of Pan American Silver Corp. (NYSE:PAAS)’s stock with an Outperform rating and a $25 price target. The firm mentioned several positive points of the company, like its successful acquisitions, strong mine operations, and more, and called it “well-valued”.
B2Gold Corp. (NYSE:BTG), SSR Mining Inc. (NASDAQ:SSRM), and Sandstorm Gold Ltd. (NYSE:SAND) are some of the most promising gold stocks according to analysts besides Pan American Silver Corp. (NYSE:PAAS).
