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With the U.S. and China striking a trade deal on Monday, the price of gold has dipped from its historic highs of over $3,400 per ounce. Although investor sentiment is turning bullish on optimism that a global recession can be avoided, gold stocks have been a pleasant hedge against market volatility as the commodity tends to hold its value or even appreciate during economic uncertainty, unlike currencies.
Furthermore, several gold stocks have made their way onto the coveted Zacks Rank #1 (Strong Buy) list as they are benefiting from the commodity's historic peak.
Image Source: Trading Economics
Agnico Eagle Mines – AEM
Stock Price: $106
There haven’t been many opportunities to buy Agnico Eagle Mines AEM stock on the dip in recent years, with the company operating one of Canada’s largest gold mines in terms of gold reserves. This makes this month’s 10% dip very intriguing as AEM has still soared over +30% year to date and is up +100% in the last three years.
Agnico’s stellar EPS growth has kept investors engaged as one of the premier gold producers, producing over 3 million ounces of gold in 2024, with gold reserves (net production) totaling 1.27 million tons.
Image Source: Zacks Investment Research
Equinox Gold – EQX
Stock Price: $6
Trading at $6 a share, Equinox Gold EQX is hard to overlook, as its valuation attests to the notion that its stock is cheap as well. Even better, the company’s growth makes the risk-to-reward very favorable, with Equinox engaged in the acquisition, exploration, and development of mineral deposits including gold, copper, and silver. Headquartered in Vancouver, Canada, Equinox’s principal properties include the Aurizona gold mine in Brazil and the Mesquite gold mine in California.
Expecting high double-digit top and bottom-line growth for the foreseeable future, EQX trades at just 6X forward earnings and under the optimum level of less than 2X sales. Plus, earnings estimate revisions have spiked in the last 30 days, with Equinox’s EPS now expected to skyrocket 400% in fiscal 2025 and projected to increase another 24% in FY26 to $1.26. This is accompanied by expectations of more than 35% sales growth in FY25 and FY26, with projections edging toward $3 billion in annual sales.
Image Source: Zacks Investment Research
Harmony Gold – HMY
Stock Price: $14
We’ll round out the list with South Africa’s biggest gold miner in Harmony Gold HMY, which specializes in both underground and surface gold mining. Like Agnico Eagle Mines, buying Harmony’s stock on the dip could be lucrative as HMY has more than tripled in the last three years, sitting on gains of nearly +300% during this period.