8 Most Undervalued Gold Stocks To Buy According To Analysts

04. Equinox Gold Corp. (NYSE:EQX)

Upside Potential: 27%

Forward Price to Earnings (P/E) Ratio: 5.90

Number of Hedge Fund Holders: 17

Equinox Gold Corp. (NYSE:EQX) deserves attention in the undervalued gold stocks category, thanks to its forward P/E ratio of just 5.90 as of October 12. With a 27% upside potential based on a target price of $7.46 compared to the current share price of $5.87, the stock offers an attractive entry point for investors. Known for exploring and developing mineral properties across the Americas, the Vancouver-based company operates key sites in the U.S., Mexico, Brazil, and Canada. Originally incorporated as Trek Mining Inc. in 2007, it rebranded to Equinox Gold Corp. (NYSE:EQX) in 2017, solidifying its identity as a significant player in the gold and silver markets.

The company’s Q2 2024 earnings report reveals a mix of challenges and strategic gains. Equinox Gold Corp. (NYSE:EQX) produced 122,000 ounces of gold during the quarter and sold 115,000 ounces at an average cash cost of $1,747 per ounce. However, due to operational disruptions, including geotechnical issues at its Piaba pit in Brazil, the company reported higher all-in sustaining costs (AISC) of $2,041 per ounce. Despite these hurdles, production guidance for the year remains robust, with expectations between 655,000 to 750,000 ounces at improved AISC levels of $1,635 to $1,735 for the rest of 2024.

A key development for Equinox Gold Corp. (NYSE:EQX) is the complete acquisition of the Greenstone Mine in Canada, consolidating its ownership to 100%. This mine is one of the largest high-grade gold projects in the country and is expected to boost cash flow and EBITDA significantly. The first gold pour took place in May, and production is ramping up as planned, with nearly 20,000 ounces produced in July alone. The company is optimistic about achieving commercial production by the end of Q3 2024, which should improve operational efficiencies and reduce per-ounce costs.

Equinox Gold Corp. (NYSE:EQX) Q2 revenues reached $269 million, driven by the sale of gold at an average price of $2,328 per ounce. With solid fundamentals, strategic acquisitions, and room for growth, Equinox Gold Corp. (NYSE:EQX) is well-positioned for upside, making it a compelling choice among undervalued gold stocks.