We recently compiled a list of the 7 Best Rising Penny Stocks To Invest In Now. In this article, we are going to take a look at where B2Gold Corp. (NYSE:BTG) stands against the other rising penny stocks.
Fed’s Rate Cut Sets the Stage for a Strong Q4
In an episode of Market Storylines on the Inside the Icehouse Podcast feed by Intercontinental Exchange, Jay Woods, Chief Global Strategist at Freedom Capital Markets, discussed Fed rate cuts and the Q4 outlook. Woods discussed the latest Fed rate cut and said that the market absorbed the rate cuts quite positively, with the S&P 500 reaching new all-time highs.
Woods mentioned that, historically, when markets hit new highs in September, the fourth quarter tends to perform well, especially in election years. As the fourth quarter approaches, he highlighted that sectors such as real estate, utilities, and industrials have led the market in the third quarter, while technology has lagged. However, it may rebound in Q4.
Woods also emphasized the importance of upcoming economic data, including the ISM manufacturing report, jobless claims, and the U.S. unemployment report, which will give insight into the labor market and the potential impact of the rate cuts.
Small and Mid-Cap Stocks Set for Major Gains
Ryan Dietrich, Chief Market Strategist at Carson Group, joined Yahoo Finance for an interview on September 29, where he expressed optimism about the stock market’s future. He believes the rate cut was necessary and should have been smaller earlier.
He mentioned that the labor market is showing signs of slowing, with initial jobless claims at a four-month low, and forward earnings for the S&P 500 improving. However, he does not foresee a recession.
Dietrich highlighted that historically, rate cuts near market highs have been followed by strong market performance, with an average annual return of around 14%. He thinks the broader market could see 12-15% gains in the next year, while small and mid-cap stocks might outperform with over 20% returns. His firm is especially focused on mid-cap stocks, which tend to perform well after rate cuts.
While the upcoming election may cause some volatility, especially in October, Dietrich remains confident that markets will stabilize afterward, as they usually react better once uncertainty passes. He expects a strong end-of-year rally and advises investors to remain diversified and take advantage of any market weakness.
Our Methodology
For this article, we used stock screeners to identify over 60 stocks under $5 with a 1-month share price gain of over 10%, as of September 30. The best rising penny stocks are listed in ascending order of their hedge fund sentiment, which was taken from Insider Monkey’s database of over 900 elite hedge funds.
Why are we interested in 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).
Aerial view of a gold mine in Mali, showing the scale of the mining operations.
B2Gold Corp. (NYSE:BTG)
1-Month Stock Price Performance: 13.07%
Number of Hedge Fund Holders: 22
B2Gold Corp. (NYSE:BTG) is a Canadian mining company that specializes in the exploration and production of gold. The company has positioned itself as a leading low-cost gold producer, boasting substantial operations in several countries, including Mali, Namibia, and the Philippines.
In 2023, it expanded its portfolio by acquiring the Goose Project in Nunavut, Canada, and re-established its 100% ownership of the Gramalote Project in Colombia. Construction at the Goose Project is on track, with the first gold expected by mid-2025.
On September 12, B2Gold (NYSE:BTG) provided an update on its Goose Project and confirmed that construction is on track for initial gold production in the second quarter of 2025, with a ramp-up to full production expected by the third quarter of the same year. The company expects an annual output of about 310,000 ounces of gold during the first five years of operation.
The company has also recently reached an agreement with the State of Mali regarding the Fekola Complex, which includes the Fekola Mine and the nearby Fekola Regional area, located about 20 kilometers away. The State will quickly provide the necessary permits for Fekola Regional and approve the underground project at Fekola.
The goal of developing Fekola Regional is to boost production and extend the mine’s life. It could provide higher-quality saprolite material and could lead to an extra 80,000 to 100,000 ounces of gold each year. The haul road and required mining facilities are already finished, which will allow mining to start once the permits are issued, with initial gold production expected in early 2025.
Moreover, B2Gold (NYSE:BTG) has set aside $10 million for its 2024 exploration program, which will involve 20,000 meters of drilling to find more high-grade mineral deposits and further extend the mine’s life.
According to Insider Monkey’s database, the company’s shares were held by 22 hedge funds with positions worth $132.613 million in Q2. This makes the company take its place on our list of 7 best rising penny stocks.
Overall BTG ranks 5th on our list of the rising penny stocks to invest in now. While we acknowledge the potential of BTG as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than BTG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.