In this article, we discuss the 5 best gold stocks to buy for recession. If you want to read about some more gold stocks, go directly to 13 Best Gold Stocks To Buy For Recession.
5. Rio Tinto Group (NYSE:RIO)
Number of Hedge Fund Holders: 26
Rio Tinto Group (NYSE:RIO) engages in exploring, mining, and processing mineral resources worldwide.
On November 23, Deutsche Bank analyst Liam Fitzpatrick maintained a Hold rating on Rio Tinto Group (NYS:ERIO) stock and raised the price target to 5,800 GBP from 5,700 GBP, noting that the company’s production growth has ground to a halt over the past three years and when global demand turns back up, the market will again be faced with low inventories, inelastic supply and incentive level prices.
Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Rio Tinto Group (NYSE:RIO) with 14.2 million shares worth more than $779 million.
4. Franco-Nevada Corporation (NYSE:FNV)
Number of Hedge Fund Holders: 28
Franco-Nevada Corporation (NYSE:FNV) operates as a gold-focused royalty and streaming company in Latin America, the United States, Canada, and internationally. On November 8, Franco-Nevada Corporation came out with adjusted quarterly earnings of 0.83 per share, or $159.7 million. The company generated $304.2 million in the third quarter, down 3.8% from last year’s same quarter.
At the end of the third quarter of 2022, 28 hedge funds in the database of Insider Monkey held stakes worth $857.2 million in Franco-Nevada Corporation (NYSE:FNV), compared to 25 in the previous quarter worth $976.7 million.
In its Q3 2022 investor letter, Horizon Kinetics, an asset management firm, highlighted a few stocks and Franco-Nevada Corporation (NYSE:FNV) was one of them. Here is what the fund said:
“Back to basic principles. We don’t hold gold in client portfolios, we hold gold royalty companies. The two have surprisingly little in common. The gold royalty company generates very impressive profits even if the gold price never rises, and it earns those profits year after year. Here is a long-term chart of Franco-Nevada Corporation (NYSE:FNV), the premier gold royalty company vs. gold itself: a comparable gold price today than a decade ago, yet Franco Nevada returned 12.5% annually, matching the S&P 500 return, despite its near sole source of revenues unchanged. What will Franco Nevada’s earnings and share price do if gold rises over the course of a decade?”
3. Barrick Gold Corporation (NYSE:GOLD)
Number of Hedge Fund Holders: 35
Barrick Gold Corporation (NYSE:GOLD) engages in the exploration, mine development, production, and sale of gold and copper properties. On November 3, Barrick Gold posted earnings for the third quarter of 2022, reporting earnings per share of $0.13, beating market estimates by $0.02. The revenue over the period was $2.53 billion, down 10.3% compared to the revenue over the same period last year and beating market estimates by $60 million.
On November 29, National Bank analyst Mike Parkin maintained a Sector Perform rating on Barrick Gold Corporation (NYSE:GOLD) stock and raised the price target to C$25 from C$24.
At the end of the third quarter of 2022, 35 hedge funds in the database of Insider Monkey held stakes worth $777.7 million in Barrick Gold Corporation (NYSE:GOLD), compared to 40 in the preceding quarter worth $1.1 billion.
In its Q1 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Barrick Gold Corporation (NYSE:GOLD) was one of them. Here is what the fund said:
“Also within the structural bucket, we have selectively added to our commodity exposure with the purchase of Barrick Gold (NYSE:GOLD). Canadian mining company Barrick Gold is a play on operating improvements. The company has aggressively delivered its balance sheet and reduced CAPEX spending to a lower level more permanently, directing its healthy free cash flow to dividends and buybacks.”
2. Agnico Eagle Mines Limited (NYSE:AEM)
Number of Hedge Fund Holders: 39
Agnico Eagle Mines Limited (NYSE:AEM) engages in the exploration, development, and production of mineral properties in Canada, Mexico, and Finland. On December 1, Agnico Eagle Mines declared a quarterly dividend of $0.40 per share, in-line with the previous. The forward yield was 3.07%.
On November 1, National Bank analyst Mike Parkin maintained an Outperform rating on Agnico Eagle Mines Limited (NYSE:AEM) stock and lowered the price target to C$75 from C$79.
At the end of the third quarter of 2022, 39 hedge funds in the database of Insider Monkey held stakes worth $598.6 million in Agnico Eagle Mines Limited (NYSE:AEM), compared to 31 in the preceding quarter worth $1.4 billion.
1. Newmont Corporation (NYSE:NEM)
Number of Hedge Fund Holders: 53
Newmont Corporation (NYSE:NEM) engages in the production and exploration of gold. On November 1, Newmont Corp posted earnings for the third quarter of 2022, reporting earnings per share of $0.27, missing market estimates by $0.07. The revenue over the period was $2.63 billion, down 9.3% compared to the revenue over the same period last year and missing market estimates by $250 million.
On November 4, Barclays analyst Matthew Murphy maintained an Equal Weight rating on Newmont Corporation (NYSE:NEM) stock and lowered the price target to $55 from $57.
Among the hedge funds being tracked by Insider Monkey, New York-based firm First Eagle Investment Management is a leading shareholder in Newmont Corporation (NYSE:NEM) with 17.9 million shares worth more than $750.5 million.
In its Q3 2022 investor letter, First Eagle Investment Management, an asset management firm, highlighted a few stocks and Newmont Corporation (NYSE:NEM) was one of them. Here is what the fund said:
“The largest gold miner in the world, Newmont Corporation (NYSE:NEM) shares lost ground in what was a volatile and ultimately down quarter for the price of gold. The Colorado-based company has continued to execute well in what has been a challenging environment. The company recently reaffirmed its full-year 2021 production guidance but indicated that it was likely to come in at the mid to low point of the range provided as a result of disruptions from Covid-19 as well as severe weather events. It also noted that inflation pressures were likely to push its costs higher in 2021. None of this changes our opinion of the stock, which has historically offered steady production anchored in good jurisdictions, a good pipeline of organic projects, a strong balance sheet and proven management.”
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