8 Best Micro Cap Stocks to Buy According to Analysts

1. Gold Royalty Corp. (NYSE:GROY)

Market Cap as Of October 29: $251.92 Million

Stock Upside Potential: 182.88%

Number of Hedge Fund Holders: 14

Gold Royalty Corp. (NYSE:GROY) is a basic materials stock specializing in providing financing solutions to the metals and mining industry. It focuses on acquiring royalties, streams, and similar interests at varying stages of the mine life cycle to build a portfolio offering near-medium-, and longer-term returns for its investors.

The company offers investors exposure to the gold market without the typical mining risks or operating expenses by purchasing royalties, streams, and interests at different mine stages. Its strategic approach positions it as a unique player in the mining finance sector by guaranteeing a mix of short-medium and long-term gains.

Compared to Q3 2023, Gold Royalty Corp. (NYSE:GROY) reported notable growth in Q3 2024, with total revenue, land agreement proceeds, and interest rising by 90% to $2.6 million. In 2024, the company’s nine-month revenues reached a record $9.0 million, a 130% increase from the previous year. Cash-flowing royalties from the Canadian Coaming, Borborema, Côté, and Malartic mines drove strong performance.

By reaching a record daily throughput of 40,900 tpd, 14% above nameplate capacity, the Côté Gold Mine has continued its successful ramp-up. Additionally, as the asset ramps up to reach nameplate capacity by the end of the year and the first copper revenue is delivered, the company anticipates receiving its first revenue from its copper stream over the Vares Mine in the fourth quarter. Gold Royalty Corp. (NYSE:GROY) is, therefore, still on course to meet its previously stated goal of 6,500 to 7,000 GEOs in 2024, which is equivalent to roughly $13 million to $14 million in anticipated Total Revenue, Land Agreement Proceeds, and Interest.

Given the solid financial and operating results, analysts on Wall Street have an average Buy rating on the stock with an average price target of $4.13, implying 182.88% upside potential.

While we acknowledge the growth potential of GROY, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than GROY but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

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