Best Gold Stocks to Buy Now
Gold is one of the oldest and most valuable assets in history. Some investors see it as a safe haven in times of market turmoil, while others see it as a hedge against inflation and currency devaluation. Whatever your reason for investing in gold, you may want to consider buying gold stocks instead of physical gold. Gold stocks are shares of companies that mine, process, or explore for gold. They offer exposure to the price of gold as well as the potential for growth and dividends.
But not all gold stocks are created equal. Some may have higher costs, lower grades, or geopolitical risks that could affect their profitability and performance. To help you find the best gold stocks to buy now, we have compiled a list of seven companies that meet the following criteria:
- They generate at least half of their annual revenue from gold.
- They have a positive earnings growth estimate for the next five years.
- They have a solvency ratio above 20%, which means they can meet their short-term and long-term financial obligations.
- They have a track record of increasing sales in the past few years.
Here are the seven best gold stocks to buy now, based on data from Trades That Swing as of May 1, 2023:
|Company (Ticker)||Market Cap||5-Year Forward EPS Growth Estimate||Sales Trend||Solvency Ratio|
|Barrick Gold Corp. (GOLD)||$32 billion||+12.5%||4 years of rising sales||40%|
|BHP Group Ltd. (BHP)||$240 billion||+14.2%||7 years of rising sales||55%|
|Centerra Gold Inc. (CGAU)||$1.5 billion||+18.7%||6 years of rising sales||128%|
|Equinox Gold Corp. (EQX)||$2.8 billion||+22.3%||8 years of rising sales||35%|
|Franco-Nevada Corp. (FNV)||$30 billion||+7.9%||15 years of rising sales||1,396%|
|Newmont Corp. (NEM)||$46 billion||+10.4%||4 years of rising sales||45%|
|Wheaton Precious Metals Corp. (WPM)||$20 billion||+9.8%||9 years of rising sales||38%|
In conclusion, these are some of the best gold stocks to buy now based on their fundamentals and growth prospects. However, before investing in any gold stock, you should do your own research and analysis, and consider your risk tolerance and investment goals.
Now that you have a list of the best gold stocks to buy now, you may want to know more about their performance and outlook. In this section, we will provide a brief analysis of each gold stock based on their latest earnings reports, news, and technical indicators.
Barrick Gold Corp. (GOLD)
Barrick Gold is one of the largest and most diversified gold producers in the world. It operates 16 mines in 13 countries across five continents. In the first quarter of 2023, Barrick reported a net income of $432 million, or $0.14 per share, beating the consensus estimate of $0.11 per share. The company also increased its quarterly dividend by 9% to $0.10 per share.
Barrick’s gold production was 1.1 million ounces in Q1, slightly lower than the previous quarter due to planned maintenance activities at some of its mines. However, the company maintained its full-year guidance of 4.4 to 4.7 million ounces of gold production at an all-in sustaining cost (AISC) of $970 to $1,020 per ounce.
Barrick’s stock price has been trading in a downtrend since reaching a 52-week high of $23.42 in August 2022. The stock is currently facing resistance at the $20 level, which coincides with the 50-day and 200-day moving averages. A break above this level could signal a reversal of the downtrend and open the door for further upside potential.
BHP Group Ltd. (BHP)
BHP Group is a global mining giant that produces a variety of commodities, including copper, iron ore, coal, oil and gas, and gold. The company’s gold segment accounted for about 6% of its total revenue in fiscal year 2022.
In the first half of fiscal year 2023, BHP reported a net profit of $6 billion, or $1.17 per share, up 16% from the same period last year. The company also declared an interim dividend of $1.01 per share, up 55% from the previous year.
BHP’s gold production was 292 thousand ounces in H1 FY23, down 9% from H1 FY22 due to lower grades at its Olympic Dam mine in Australia and reduced throughput at its Escondida mine in Chile. However, the company expects its gold production to increase in H2 FY23 as it ramps up its Spence Growth Option project in Chile and benefits from higher grades at Olympic Dam.
BHP’s stock price has been trading in an uptrend since hitting a 52-week low of $29.78 in March 2022. The stock recently broke above the $70 level, which was a major resistance zone since 2011. The stock is now trading near its all-time high of $72.19 and could continue to climb higher as long as it stays above the support level of $68.
Centerra Gold Inc. (CGAU)
Centerra Gold is a Canadian-based gold producer that operates three mines in Canada, Turkey, and Kyrgyzstan. The company also has several exploration and development projects in North America and Asia.
In the first quarter of 2023, Centerra reported a net income of $97 million, or $0.33 per share, up 85% from the same quarter last year. The company also increased its quarterly dividend by 25% to C$0.05 per share.
Centerra’s gold production was 220 thousand ounces in Q1, up 18% from Q1 2022 due to higher output at its Mount Milligan mine in Canada and its ÃksÃ¼t mine in Turkey, which achieved commercial production in May 2022. The company maintained its full-year guidance of 740 to 820 thousand ounces of gold production at an AISC of $820 to $870 per ounce.
Centerra’s stock price has been trading in a sideways range between C$10 and C$14 since June 2022. The stock is currently testing the upper end of this range and could break out if it sustains above C$14. The next resistance level is C$16, which was the previous high reached in February 2022.