In this article, we will take a look at 8 most undervalued gold stocks to buy according to analysts.
Gold has been on a remarkable run in 2024, solidifying its place as one of the top-performing assets of the year. Its impressive rally reflects not only the metal’s safe-haven status but also several key macroeconomic shifts. Central banks around the world, geopolitical tensions, and shifting market dynamics have all contributed to the surge in gold prices. Analysts are optimistic that this momentum will carry over into 2025. A Reuters report highlights that gold is benefiting from robust physical demand from China and renewed inflows into exchange-traded funds (ETFs), a trend that had stalled since April 2022. J.P. Morgan analysts have emphasized the importance of these ETF inflows, noting that their revival is essential for sustaining gold’s upward trajectory.
Adding further fuel to the rally is the U.S. Federal Reserve’s decision to initiate a rate-cutting cycle. This policy shift has weakened the dollar, making gold more attractive to investors. So far, gold has gained nearly 30% this year, an increase of nearly $595 per ounce, reaching a record high of $2,657 per ounce as of October 11. This is gold’s best annual performance since 2010, significantly outpacing the returns of major stock indices. UBS analysts believe that gold still has room to climb over the next six to twelve months. They argue that the Fed’s ongoing rate cuts, along with the approaching U.S. presidential election, could lead to higher market volatility, encouraging investors to further flock to gold as a hedge.
Goldman Sachs also maintains a bullish outlook, forecasting that prices could hit $2,700 by early 2025. They attribute this projection to growing central bank purchases, which have accelerated since Russia’s invasion of Ukraine. Central banks are increasingly diversifying away from the U.S. dollar to shield themselves from potential financial sanctions, making gold a preferred reserve asset. Goldman strategists also point to geopolitical uncertainties—such as trade tensions or rising U.S. debt—as additional catalysts that could drive gold prices even higher.
Several financial institutions are now projecting gold prices to continue climbing beyond 2025. ANZ sees gold reaching $2,805 by the end of 2025, while BofA forecasts a potential rise to $3,000 per ounce. Macquarie expects a peak of $2,600 per ounce in early 2025, with room for a surge toward $3,000. Similarly, Citi Research predicts prices could hover between $2,800 and $3,000 per ounce within the next two years.
This bullish outlook has attracted increased attention from investors and hedge funds alike, who view gold as a reliable investment in today’s uncertain economic landscape. The combination of falling interest rates, strong physical demand, and robust ETF inflows creates an ideal environment for gold prices to appreciate further. As a result, many investors are also turning to gold mining stocks as a more cost-effective way to gain exposure to the metal’s rally.
In the near future, many investors are eyeing gold as a safeguard against economic uncertainty. “Any case of turbulence in the economy,” explains FxPro senior market analyst Michel Saliby, “is why they’re keeping a decent portion of gold in their portfolio as a ‘safe haven.’” Analysts highlight strong demand from central banks as another key factor, with Joe Cavatoni from the World Gold Council noting that central bank gold purchases are well above the five-year average, driven by “heightened concern with inflation and economic stability.” China’s latest stimulus efforts aimed at boosting consumer spending are also expected to support retail investments in gold, further strengthening its performance, Saliby added.
However, experts warn against overinvesting; Saliby cautions investors not to fall for the “FOMO effect,” advising them to avoid chasing gains just because others are profiting and to maintain a clear risk management strategy. If geopolitical tensions ease, Saliby expects gold prices to correct by $50 to $80, though he remains optimistic that the spot price could surpass the $2,700 forecast for 2025, potentially reaching $2,800 or even $2,900. Still, future gains aren’t guaranteed, and gold has its skeptics. Some argue that gold isn’t always an effective hedge against inflation, suggesting that derivative-based investments may offer better protection against losses. The Commodity Futures Trade Commission has also warned that precious metals are highly volatile, with prices often rising only when economic anxiety is high—benefiting sellers the most during periods of instability, reported Fortune.
Keeping this context in view, we dive into eight undervalued gold stocks that analysts believe offer significant upside potential. These stocks not only provide investors with a cheaper entry point into the gold market but also stand to benefit from the broader rally in gold prices. With solid fundamentals and growth prospects, these gold stocks could be valuable additions to any portfolio looking to capitalize on the ongoing surge in the precious metal.
A close-up of the company’s gold bars and certificates of authenticity, lit up by a spotlight.
Our Methodology
For this article, we used the stock screeners to identify companies in the gold industry with a forward Price-to-Earnings (P/E) ratio of less than 15 as of October 11, 2024. We then reviewed the price targets set by analysts for each stock and compared them to their respective closing prices on October 11 to evaluate the upside potential. Additionally, we analyzed data from approximately 912 elite hedge funds tracked by Insider Monkey during the second quarter of 2024 to assess hedge fund ownership of each company. The stocks are ranked in ascending order based on their upside potential.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
08. Eldorado Gold Corporation (NYSE:EGO)
Upside Potential: 16%
Forward Price to Earnings (P/E) Ratio: 11.65
Number of Hedge Fund Holders: 19
Eldorado Gold Corporation (NYSE:EGO) is an interesting pick for investors looking for undervalued gold stocks. With a forward P/E ratio of 11.65 as of October 12, the stock offers value and an attractive growth potential. Analysts have set a target price of $20.23, representing a 16% upside from its current trading price of $17.51. The company’s fundamentals and geographic diversification position it well in the gold mining industry.
Eldorado Gold Corporation (NYSE:EGO) operates across key mining regions, including Turkey, Canada, Greece, and Romania. It holds full ownership in prominent mines like Kisladag and Efemçukuru in Turkey, as well as the Lamaque complex in Canada. Additionally, the company has a solid foothold in Greece with several projects, including the Skouries and Olympias mines, along with an 80.5% interest in the Certej project in Romania. This diversified asset base helps Eldorado Gold Corporation (NYSE:EGO) manage operational risks while maintaining steady production.
In Q2 2024, Eldorado Gold Corporation (NYSE:EGO) reported gold production of 122,319 ounces, aligned with its annual target of 505,000–555,000 ounces. The company experienced a slight production setback at its Olympias mine due to labor strikes, but management expects stronger output in the second half of the year. Despite higher costs in Q2, driven by increased royalties and labor expenses, total cash costs per ounce were $940, with all-in sustaining costs (AISC) at $1,331 per ounce, both within the company’s 2024 guidance.
Financially, the company remains on solid ground. Eldorado Gold Corporation (NYSE:EGO) reported net earnings of $56 million, or $0.28 per share, boosted by higher gold prices and increased sales. Adjusted net earnings stood at $66.6 million, or $0.33 per share, reflecting one-time adjustments. The company also ended Q2 with significant liquidity, including $595 million in cash and $215 million in available credit, which supports ongoing investments in growth projects like Skouries.
Eldorado Gold Corporation (NYSE:EGO) strategic growth focus and disciplined financial management make it a compelling option among undervalued gold stocks. With stable production, effective cost management, and upside potential in gold prices, it offers an appealing opportunity for investors looking to benefit from the gold sector’s momentum.
07. AngloGold Ashanti plc (NYSE:AU)
Upside Potential: 18%
Forward Price to Earnings (P/E) Ratio: 7.64
Number of Hedge Fund Holders: 17
AngloGold Ashanti plc (NYSE:AU), a global gold mining company with operations across Africa, Australia, and the Americas, deserves a spot among the most undervalued gold stocks to buy now. As of October 12, the company’s forward P/E ratio stands at just 7.64, highlighting its value compared to peers. Analysts forecast an 18% upside potential, with a target price of $32 against the current share price of $27.18. This valuation makes AngloGold Ashanti plc (NYSE:AU) an attractive option for investors looking to capitalize on both its operational momentum and the broader appeal of gold.
The company operates several high-quality assets, including its flagship Geita mine in Tanzania. Beyond gold, AngloGold also produces silver and sulfuric acid as by-products, contributing to diversified revenue streams. Recent performance highlights from its Q2 2024 earnings call reflect the strength of AngloGold Ashanti plc (NYSE:AU) operations. Notably, the company increased production by 2% year-over-year, with Q2 production alone up 12% compared to Q1. Despite flooding-related setbacks in Australia, operations rebounded quickly, demonstrating operational resilience.
A key highlight from the earnings report is AngloGold Ashanti plc (NYSE:AU) success in reducing cash costs. Cash costs fell 1% year-over-year, a remarkable achievement given the challenges faced in early 2024. This positions the company well to capture gains from rising gold prices. Strong cost control has also allowed AngloGold to generate impressive free cash flow of $206 million, a turnaround from an outflow of $205 million in the same period last year.
On the profitability side, AngloGold Ashanti plc (NYSE:AU) reported a 65% increase in EBITDA to $1.12 billion, driven by both higher production volumes and cost efficiencies. Looking forward, the company expects to maintain this positive trajectory, forecasting stronger cash flows and further production gains in the second half of 2024.
The company’s robust liquidity and low gearing provide a solid foundation to invest in both its existing portfolio and future growth opportunities. With new mining areas, like the high-grade Block 10, expected to come online next year, AngloGold Ashanti plc (NYSE:AU) is well-positioned for sustainable growth. Given its undervalued status and strong fundamentals, AngloGold Ashanti plc (NYSE:AU) stands out as a compelling buy for value-focused investors.
06. Gold Fields Limited (NYSE:GFI)
Upside Potential: 22%
Forward Price to Earnings (P/E) Ratio: 8.53
Number of Hedge Fund Holders: 20
Gold Fields Limited (NYSE:GFI) is a global gold producer with mining operations spread across Chile, South Africa, Ghana, Canada, Australia, and Peru. The company also explores copper and silver, adding diversity to its portfolio. As of October 12, Gold Fields Limited (NYSE:GFI) has a forward P/E ratio of 8.53, suggesting it is trading at an attractive valuation relative to its future earnings. With a current share price of $15.40 and a target price of $18.79, the stock offers an upside potential of 22%, making it a compelling choice for inclusion in our list of undervalued gold stocks.
In Q2 2024, Gold Fields Limited (NYSE:GFI) reported solid financials, surpassing analysts’ earnings expectations with EPS of $0.4344 compared to a forecast of $0.34. Despite production setbacks, the company generated $320 million in adjusted free cash flow, thanks to higher gold prices. Although first-half production saw a 20% year-over-year decline, the outlook for the second half remains optimistic. The management expects production to pick up as the Salares Norte mine ramps up and operational challenges at South Deep, St Ives, and Gruyere are addressed.
Operationally, the company faced headwinds like adverse weather impacting Gruyere’s operations and supply disruptions. However, Gold Fields Limited (NYSE:GFI) has taken corrective actions, including recovery plans at several mines, ensuring a stronger performance in the latter half of the year. Management remains confident in achieving their annual production guidance of 2.05–2.15 million ounces, with over 1.2 million ounces expected in H2 2024.
The company’s financial discipline is further reflected in its commitment to shareholder returns, distributing 40% of its normalized earnings as dividends. Additionally, strategic moves such as the recent acquisition of Osisko Mining’s Windfall project highlight its focus on long-term growth. Gold Fields Limited (NYSE:GFI) is also progressing in sustainability initiatives, with renewable energy projects underway at its Australian mines.
In conclusion, Gold Fields Limited (NYSE:GFI) attractive valuation, solid cash flow generation, dividend policy, and strategic growth initiatives make it an undervalued opportunity in the gold sector. As production normalizes in the second half of 2024, investors can expect the stock to unlock significant value, aligning with its strong fundamentals and the promising outlook ahead.
05. IAMGOLD Corporation (NYSE:IAG)
Upside Potential: 25%
Forward Price to Earnings (P/E) Ratio: 6.48
Number of Hedge Fund Holders: 19
IAMGOLD Corporation (NYSE:IAG) stands out as one of the most undervalued gold stocks today, with a forward P/E ratio of just 6.48 as of October 12, 2024. At its current share price of $4.83, analysts expect a significant upside potential of 25%, projecting a target price of $6.02. With operations spanning across Canada and Burkina Faso, IAMGOLD’s portfolio includes a 100% interest in the Westwood project in Quebec, a 60% stake in the Côté gold project in Ontario, and a 90% interest in the Essakane project in Burkina Faso. These assets reflect the company’s growth prospects and operational reach, making it an attractive pick for value investors seeking exposure to gold.
IAMGOLD Corporation (NYSE:IAG) Q2 2024 results showcased robust production and operational improvements, driven by successful ramp-ups across key sites. The company produced 166,000 ounces of gold in the second quarter alone, contributing to a total of 317,000 ounces year-to-date. Notably, the Côté project is ramping up smoothly and is expected to become one of Canada’s largest gold mines, enhancing IAMGOLD’s production base while lowering costs.
From a cost-efficiency perspective, IAMGOLD Corporation (NYSE:IAG) financials are trending in the right direction. All-in sustaining costs (AISC) were reported at $1,617 per ounce, reflecting solid cost control amidst inflationary pressures. Meanwhile, capital expenditures decreased to $119.7 million in Q2 as the company transitions from development to production at Côté, setting the stage for stronger free cash flow in the coming quarters.
The company also strengthened its liquidity, ending the quarter with cash and cash equivalents of $511.4 million, contributing to total available liquidity of $915.7 million. IAMGOLD’s balance sheet remains unburdened, with an undrawn credit facility providing flexibility for strategic initiatives.
Moreover, the company’s production guidance for 2024 was increased, reflecting operational strength at Essakane and Westwood. With improved output and controlled costs, IAMGOLD Corporation (NYSE:IAG) is well-positioned to generate meaningful free cash flow, enabling it to reduce debt and enhance shareholder value.
Given its low valuation, strong fundamentals, and future growth potential, IAMGOLD Corporation (NYSE:IAG) presents an appealing investment opportunity for those seeking undervalued gold stocks with solid upside.
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.
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.
02. Fortuna Mining Corp. (NYSE:FSM)
Upside Potential: 32%
Forward Price to Earnings (P/E) Ratio: 7.66
Number of Hedge Fund Holders: 17
Fortuna Mining Corp. (NYSE:FSM) is an intriguing pick for investors seeking undervalued gold stocks. With a forward P/E ratio of just 7.66 as of October 12, 2024, and an upside potential of 32%, based on a target price of $6.28 against the current share price of $4.75, it fits comfortably into this category. The company’s ability to capitalize on operational excellence across multiple regions makes it a compelling investment.
Founded in 1990 and headquartered in Vancouver, Canada, Fortuna Mining Corp. (NYSE:FSM) operates gold and silver mining projects in several countries, including Argentina, Mexico, Peru, Côte d’Ivoire, and Burkina Faso. Its most prominent asset, the Séguéla gold mine in Côte d’Ivoire, covers 62,000 hectares and has become a key contributor to the company’s growth. Formerly known as Fortuna Silver Mines, the firm rebranded to Fortuna Mining Corp. (NYSE:FSM) in June 2024 to reflect its diversified portfolio in both precious and base metals.
Fortuna Mining Corp. (NYSE:FSM) Q2 2024 financial performance underscores its potential. The company generated $260 million in revenue, with gold contributing 81% of total sales. The business reported $113 million in adjusted EBITDA, reflecting a healthy 43% margin over revenue, and produced 116,000 gold equivalent ounces during the quarter. Free cash flow from operations came in at $39 million, with cash flow per share hitting $0.30, signaling strong operational efficiency.
A major highlight from Q2 was the successful ramp-up of the Séguéla processing plant, which operated 36% above its design capacity, mitigating power disruptions from the national grid. The company also advanced key capital projects, including the Lindero leach pad expansion, expected to be completed by Q4 2024, ensuring reserves for the next decade.
Fortuna Mining Corp. (NYSE:FSM) solid balance sheet strengthens its position, with $350 million in liquidity and a low net debt-to-EBITDA ratio of 0.2. A recent oversubscribed $172 million convertible notes placement further reduced borrowing costs, improving financial flexibility for future projects.
With effective cost management, including an all-in sustaining cost (AISC) of $1,097 per gold ounce, and promising exploration success at Seguela’s Kingfisher discovery, Fortuna Mining Corp. (NYSE:FSM) is well-positioned for growth. Its ability to perform across varying market cycles makes it a prime candidate among undervalued gold stocks.
01. Galiano Gold Inc. (NYSE:GAU)
Upside Potential: 94%
Forward Price to Earnings (P/E) Ratio: 2.55
Number of Hedge Fund Holders: 7
Galiano Gold Inc. (NYSE:GAU) is a compelling addition to the list of undervalued gold stocks, with solid financial metrics and strong fundamentals supporting its potential. With a forward P/E ratio of just 2.55 as of October 12, the stock appears deeply discounted. Currently trading at $1.43 per share, it holds an impressive 94% upside potential based on analysts’ target price of $2.77.
Founded in 1999 and headquartered in Vancouver, Canada, Galiano Gold Inc. (NYSE:GAU) operates primarily through its flagship asset, the Asanko Gold Mine, located in Ghana. This expansive site, spanning 21,000 hectares, is a cornerstone of Galiano’s operations. The company reported solid Q2 2024 results, despite some operational challenges. Revenue for the quarter came in at $64 million, accompanied by a net income of $8.8 million and adjusted EBITDA of $17.6 million, reflecting robust financial performance.
One of the company’s most notable strengths is its pristine balance sheet, with $123 million in cash and zero debt. This liquidity provides flexibility for strategic growth and potential future investments, including the Nkran pit project. Additionally, Galiano Gold Inc. (NYSE:GAU) increased the gold reserves at its Abore deposit by 45%, adding 151,000 ounces, which improves long-term production prospects.
However, wet ground conditions slowed mining operations in Q2, resulting in a downward revision of full-year gold production guidance to 120,000 – 130,000 ounces. This also pushed all-in sustaining costs higher to $1,975 – $2,075 per ounce. Despite these temporary setbacks, the company’s low mining costs, below $3 per tonne, and its focus on operational efficiency highlight its ability to navigate short-term challenges effectively.
Management is committed to long-term value creation, prioritizing strategic investments over immediate shareholder returns like buybacks. Moreover, Galiano Gold Inc. (NYSE:GAU) new additions to the Board of Directors further strengthen corporate governance and strategic oversight.
In summary, Galiano Gold Inc. (NYSE:GAU) offers a strong blend of financial stability, growth potential, and operational efficiency, making it an attractive pick among undervalued gold stocks. With its low P/E ratio, high liquidity, and a promising reserve base, the company is well-positioned to benefit from improving market conditions and rising gold prices.
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