5 Best Commodity Stocks To Buy Now

2. Barrick Gold Corporation (NYSE: GOLD)

Number of Hedge Fund Holders: 53

Barrick Gold ranks 2nd in the list of 10 best commodity stocks to buy now. The gold miner has assets in Carlin, Cortez, Turquoise Ridge, Long Canyon, Phoenix, Pueblo Viejo, Loulo-Gounkoto, Kibali, Hemlo and Porgera. The company is also a major producer of copper. Bank of America recently gave bullish comments for Barrick Gold along with other gold stocks. The firm likes Barrick Gold because of the company’s policies of giving a priority to shareholder returns. BofA has a Buy rating for GOLD stock.

First Eagle Investment Management currently holds 26.8 million shares of Barrick Gold Corp. that amounts $610.8 million. GOLD occupies 1.72% of First Eagle’s total portfolio.

GoodHaven Capital Management, in their Q4 2020 investor letter, mentioned Barrick Gold Corporation (NYSE: GOLD) and emphasized their views on the company. Here is what GoodHaven Capital Management has to say about Barrick Gold Corporation in their Q4 2020 investor letter:

“Barrick’s recent results have been consistent with our expectations. Barrick has begun inching up the dividend as planned, which should continue increasing absent them finding a large acquisition (they want more copper assets) or a materially lower price of gold. We’d also expect periodic special dividends during stronger gold price environments. At current gold prices we estimate normalized free cash flow at Barrick of over $1.60/share. The company is now about net-debt free. We see plenty of upside and absent a collapse in gold not too much downside. Missing from much of the public discussions about gold, but potentially interesting, is the supply/demand backdrop. As the Wall Street Journal (8/16/20) recently said “gold is amongst the rarest metals in the earth’s crust and much of the easier to get to ore has already been mined. What is left is harder to find and more expensive to extract…” According to the World Platinum Council, it was forecasted that there will be a supply and demand imbalance of 1.2 million ounces globally. The potential macro tailwinds that could add value to an alternate currency like gold including currency concerns, excessive debt and continuing negative real interest rates are still out there. While the shares performed well for the year they were weak in the second half and now stand more attractively priced.”