We recently published a list of 12 Best Stocks Under $25 To Invest In Right Now. In this article, we are going to take a look at where Barrick Gold Corporation (NYSE:GOLD) stands against other best stocks under $25 to invest in right now.
A View of the US Stock Market Post-Election
As reported by NPR, the Dow Jones Industrial Average soared to a record high, and so did the Nasdaq and the S&P 500, after Donald Trump’s victory in the 2024 presidential election. Wall Street investors consider this victory beneficial for business interests. While businesses have been victims of excessive regulations under the Biden administration, Trump is expected to ease restrictions and lower taxes. Investors were also glad to see the timely results of the election. Commenting on the scenario, Adam Turnquist, chief technical strategist at LPL Financial, stated:
“The market’s not only welcoming a Trump victory, but [also] the decisiveness of the victory. The clouds of uncertainty have really parted”
With shareholders expecting lighter government oversight of the financial sector, the sector climbed 6.16% and emerged as the best-performing of the eleven major S&P 500 sectors. The S&P 500 bank index was up 10.68%, posting its largest daily jump in two years. Companies issuing credit cards performed especially well.
A particular sector that appeared bright after Trump’s win was crypto. The price of Bitcoin rose above $80,000 for the first time ever after the win. Other cryptocurrencies such as dogecoin which is the favorite coin of Elon Musk, a strong Trump supporter, are also posting gains, as reported by BBC. Regarding the future outlook for Bitcoin, Bitwise’s Matt Hougan told CNBC that there is a clear path right up to $100,000 by 2024’s end while $200,000 is completely reasonable for 2025 considering that the trend is up and is going to stay intact for a while.
Simultaneously, the conventional energy sector surged keeping in mind the new President’s goal to boost fossil fuel production. However, the clean energy sector suffered with at least half a dozen developers putting projects on hold as many projects await more clarity from the new administration. The new President had stated that he would pull back the unspent funds from Biden’s climate law, calling it a ‘green new scam’. While Trump’s win has been deemed as a setback for climate protection, analysts and activists believe that the transition to cleaner sources of energy will continue regardless, considering the fact that customers and investors want companies to deal with climate change. The economic benefits from new factories and power plants that have received government support can be seen in both states led by Democrats and Republicans.
Since Trump has plans to increase tariffs on foreign goods entering the US, the retail stocks that have their products produced outside the country posted declines after the election. However, other retail sector stocks especially department stores and others that derive revenue from issuing branded credit cards joined in on the post-election rally, as reported by Barron’s.
Our Methodology
To compile a list of the 12 best stocks under $25 to invest in right now, we used the Yahoo stock screener to acquire a list of stocks with the highest market caps and share prices below $25. We then examined analysts’ average upside potential of the shortlisted stocks. Our list is in ascending order of average upside potentials, as of November 18.
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).
A miner examining yellow gold ore in a mine shaft, symbolizing the company’s exploration process.
Barrick Gold Corporation (NYSE:GOLD)
Average Upside Potential: 44.46%
Share Price: $16.65
Barrick Gold Corporation (NYSE:GOLD) serves as a sector-leading gold and copper producer. The firm’s operations and projects span eighteen countries and four continents. Barrick is a world-class global mining company that has one of the largest portfolios of Tier One and world-class gold and copper assets that remain unrivaled in the industry.
The firm is increasing its copper exposure and is in a good spot to capitalize on global decarbonization trends resulting in the long-term fundamental strength of copper. Also, Barrick has a strong exploration success track record as well as a clear runway with its mines having 10-year business plans, some even rolling out to 15 and 20 years. Among peers, Barrick has maintained the highest gold reserve grade by delivering unparalleled growth of reserve base. Additionally, since year-end 2019, the firm has organically replaced over 140% of mined gold reserves thereby adding almost 29Moz of attributable proven and probable reserves.
Currently, the firm is set to deliver a strong end to the year. In Q3, gold production was in line with the previous quarter while copper production was up 12% quarter-over-quarter. Net earnings per share grew by 33% year-over-year. Through the ramp-up of the Pueblo Viejo plant expansion, enhanced throughput at Nevada Gold Mines, and higher grades at Kibali, the firm looks forward to a bright Q4.
Thus, Barrick Gold Corporation (NYSE:GOLD) has a unique portfolio of gold and copper assets alongside a robust growth pipeline and an unmatched ability to organically replace reserve depletion. The firm has been capable of returning $4.9 billion to shareholders since 2019 in the form of dividends, capital returns, and share buybacks.
Overall, GOLD ranks 2nd on our list of best stocks under $25 to invest in right now. While we acknowledge the potential of GOLD as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for a deeply undervalued AI stock that is more promising than GOLD 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.
Disclosure: None. This article is originally published at Insider Monkey.
