8 Most Undervalued Gold Stocks To Buy According To Analysts

03. Centerra Gold Inc. (NYSE:CGAU)

Upside Potential: 31%

Forward Price to Earnings (P/E) Ratio: 10.35

Number of Hedge Fund Holders: 17

Centerra Gold Inc. (NYSE:CGAU) offers investors an exciting opportunity, standing out as one of the most undervalued gold stocks today. As of October 12, it trades at $7.11 per share, but analysts set a target price of $9.30, indicating an impressive upside potential of 31%. With a forward P/E ratio of just 10.35, it is a bargain in the gold mining sector, making it a strong candidate for those seeking undervalued stocks.

Centerra Gold Inc. (NYSE:CGAU) focuses on the acquisition, exploration, and operation of gold, copper, and molybdenum mines across North America, Turkey, and internationally. Its flagship assets include the Mount Milligan mine in British Columbia and the Öksüt mine in Turkey. The company’s diversified asset base offers exposure to multiple metals, making it well-positioned to benefit from fluctuating commodity prices.

In its Q2 2024 earnings, Centerra Gold Inc. (NYSE:CGAU) showcased solid financial performance. The company generated $94 million in operating cash flow before working capital adjustments, reflecting steady operations. Additionally, adjusted net earnings hit $47 million, or $0.23 per share, underscoring profitability even amid varying production volumes. The all-in sustaining cost (AISC) was $1,179 per ounce of gold, which is competitive within the industry.

Operationally, Mount Milligan produced over 38,000 ounces of gold and 13 million pounds of copper, with improvements expected in the second half of 2024. The company also advanced optimization efforts at this site, which will likely lower production costs in 2025. At the Öksüt mine, second-quarter output was over 51,000 ounces, with higher production expected in the second half, potentially boosting revenues further.

Centerra Gold Inc. (NYSE:CGAU) growth prospects remain strong. Ongoing exploration at its Goldfield project in Nevada may unlock additional resources, while the feasibility study at Thompson Creek could enhance molybdenum operations. The company’s commitment to ESG goals—like achieving 38% female board representation—demonstrates forward-thinking management, adding to its investment appeal.

In summary, Centerra Gold Inc. (NYSE:CGAU) solid fundamentals, operational efficiency, and commitment to sustainability make it a compelling buy. Trading at a discount with a significant upside potential, the stock is an attractive choice for investors looking to gain exposure to the gold sector.