In this article, we discuss the 5 best gold stocks to buy right now. If you want to read our detailed analysis of these stocks, go directly to the 10 Best Gold Stocks To Buy Right Now.
5. Wheaton Precious Metals Corp. (NYSE:WPM)
Number of Hedge Fund Holders: 26
Virus concerns and the falling dollar have pushed the prices of gold to new highs in the past few months. Wheaton Precious Metals Corp. (NYSE:WPM), a mining firm that mostly deals in precious metals, has benefited from this increase in gold prices. As gold hit $1,800/oz in August this year, the firm posted earnings for the second quarter, reporting a revenue of $330 million, up 33% year-on-year and beating predictions by $2.1 million.
KeyBanc analyst Adam Josephson recently initiated coverage of Wheaton Precious Metals Corp. (NYSE:WPM) with an Overweight rating and a price target of $47, noting that the company was the “go to precious metals royalty/streaming” firm among investors.
At the end of the second quarter of 2021, 26 hedge funds in the database of Insider Monkey held stakes worth $471 million in Wheaton Precious Metals Corp. (NYSE:WPM), down from 28 in the previous quarter worth $439 million.
In its Q2 2020 investor letter, First Eagle Investment Management, an asset management firm, highlighted a few stocks and Wheaton Precious Metals Corp. (NYSE:WPM) was one of them. Here is what the fund said:
“The strength in the price of gold was generally supportive of gold-related equities whose performance historically has been leveraged to the gold price. One such example is Wheaton Precious Metals, a Canadian streaming company that maintains, in our view, a high-quality, low-cost portfolio of precious metal purchase agreements that is well diversified across mining partners, geographies and metal types. Despite pandemic-related suspensions of six of its mining assets, Wheaton posted a 50% year-over-year increase in operating cash flow for the first quarter, which allowed the company to reduce its net debt while raising its quarterly dividend payment.”
4. Kinross Gold Corporation (NYSE:KGC)
Number of Hedge Fund Holders: 28
Kinross Gold Corporation (NYSE:KGC) is a Canadian company that engages in the development of gold properties across the world. In July, National Bank analyst Mike Parkin had upgraded the stock to Outperform from Sector Perform with a price target of $11, appreciating the solid second quarter earnings of the firm. The company beat market predictions on earnings per share by $0.01 in the second quarter.
Kinross Gold Corporation (NYSE:KGC) also has an impressive dividend history. In late July this year, the company declared a quarterly dividend of $0.03 per share, in line with previous. The forward yield was 1.92%.
At the end of the second quarter of 2021, 28 hedge funds in the database of Insider Monkey held stakes worth $360 million in Kinross Gold Corporation (NYSE:KGC), up from 27 in the previous quarter worth $444 million.
3. Barrick Gold Corporation (NYSE:GOLD)
Number of Hedge Fund Holders: 47
Barrick Gold Corporation (NYSE:GOLD) is one of the favorite gold stocks among hedge funds. In October, the company announced that it was on track to meet the targets for the year after a strong performance during the third quarter in which sales stood at over 1 million oz of gold while production was around 1.09 million oz. The production between June and September this year was up 5% from the previous quarter.
In late September, KeyBanc analyst Adam Josephson initiated coverage of Barrick Gold Corporation (NYSE:GOLD) stock with a Sector Weight rating, noting that the valuation of the firm seemed “fair” in the present environment.
At the end of the second quarter of 2021, 47 hedge funds in the database of Insider Monkey held stakes worth $1.2 billion in Barrick Gold Corporation (NYSE:GOLD), down from 49 the preceding quarter worth $1.3 billion.
In its Q4 2020 investor letter, GoodHaven Capital Management, an asset management firm, highlighted a few stocks and Barrick Gold Corporation (NYSE:GOLD) was one of them. Here is what the fund said:
“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.”
2. Newmont Corporation (NYSE:NEM)
Number of Hedge Fund Holders: 55
Newmont Corporation (NYSE:NEM) is a Colorado-based firm that engages in the production and exploration of gold. It has a market cap of more than $43 billion and posted over $11 billion in revenue last year. A regulatory crackdown in China that has hurt growth stocks in the US has resulted in an increase in gold prices, pushing stocks like Newmont higher in recent months. At the end of 2020, the firm had proven and probable gold reserves of 94 million ounces.
On September 24, investment advisory KeyBanc initiated coverage of Newmont Corporation (NYSE:NEM) stock with a Sector Weight rating and no price target. Adam Josephson, an analyst at the advisory, issued the ratings update.
At the end of the second quarter of 2021, 55 hedge funds in the database of Insider Monkey held stakes worth $1.2 billion in Newmont Corporation (NYSE:NEM), up from 43 in the preceding quarter worth $994 million.
In its Q1 2020 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 gold price helped support the stock price of Newmont Corporation, a Colorado-based miner with, in our view, highquality assets located in favorable mining jurisdictions in North America, South America, Australia and Africa. With what we consider an impressive portfolio of assets, strong management team, solid balance sheet and history of generating free cash flow, Newmont appears well positioned to withstand the economic disruptions related to the coronavirus pandemic.”
1. Freeport-McMoRan Inc. (NYSE:FCX)
Number of Hedge Fund Holders: 76
Inflation fears have helped push the prices of mining stocks like Freeport-McMoRan Inc. (NYSE:FCX) higher in the past few months. The company, which operates from Arizona, has significant interests in the gold business. It recently posted earnings for the third quarter, beating market estimates on earnings per share by $0.09. The revenue over the period was $6 billion, up 57% year-on-year.
Bank of America analyst Lawson Winder recently reinstated coverage of Freeport-McMoRan Inc. (NYSE:FCX) stock with a Buy rating and a price target of $30, noting the firm was a “large, liquid, and well-run” offering in the mining sector.
At the end of the second quarter of 2021, 76 hedge funds in the database of Insider Monkey held stakes worth $3.8 billion in Freeport-McMoRan Inc. (NYSE: FCX), up from 68 in the preceding quarter worth $3.2 billion.
You can also take a peek at 10 Penny Stocks Redditors are Buying in August and 10 Best Nickel Stocks to Buy Now.
