We recently published a list of the 10 Cheap Hot Stocks to Buy Right Now. In this article, we are going to take a look at where Eldorado Gold Corp. (NYSE:EGO) stands against other cheap hot stocks.
Periods of high market volatility can make cheap stocks attractive because sharp price swings may undervalue fundamentally strong growth companies in the short run. This allows selective long-term investors to buy them at a discount and benefit when stability returns and prices recover. On April 17, AB’s Jim Tierney and Charles Schwab’s Kathy Jones appeared together on CNBC’s ‘Power Lunch’ to discuss how long-term investors should move in the current market. Kathy Jones recommended neglecting the current marked noise and emphasized the importance of sticking to fundamental investment principles during such uncertainty. She advised investors to remain diversified, while keeping in mind their personal risk tolerance and capacity. She says that the current environment is one of considerable uncertainty and volatility, making a conservative, credit-quality-focused fixed income portfolio suitable. Jones thinks that long-term investors seeking income, capital preservation, and diversification from stocks should focus on higher credit quality bonds with a duration of about 5 to 7 years. She believes that this duration can balance earning a fair amount of interest income while minimizing credit risk, volatility, and interest rate risk.
Given the current market uncertainty, Jim Tierney encouraged equity investors to seek and be selective about opportunities available to them right now. He’s optimistic that attractive investment opportunities still exist despite the challenging environment. Tierney also addressed whether the recent market rebound should prompt investors to sell. He argued that for long-term investors, slightly lower prices amid a market that has risen about 90% over 5 years present a better entry point. He cautioned against expecting annual gains of 20% every year, noting that such consistently high returns are unrealistic. He highlighted the potential for companies capable of double-digit growth over the next 5 years to perform well despite tariff uncertainties. He advised focusing on firms that manufacture locally in different countries, so that tariff risks can be avoided. He even thinks that the companies with pricing power would be better off if tariffs were implemented in some form.
Our Methodology
We first sifted through the Finviz stock screener to compile a list of the top cheap stocks with a forward P/E ratio under 15 as of April 16. Then we picked the 10 hot stocks with highest gains over the past 1 month (over 15%), that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey’s database, which tracks the moves of over 900 elite money managers.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Aerial view of a large open-pit gold mine with a fleet of mining trucks in the foreground.
Eldorado Gold Corp. (NYSE:EGO)
Forward P/E Ratio as of April 16: 11.96
Gain Over the Past 1 Month: 29.50%
Number of Hedge Fund Holders: 19
Eldorado Gold Corp. (NYSE:EGO) mines, explores, develops, and sells mineral products primarily in Turkey, Canada, and Greece. It produces gold, silver, lead, and zinc. It holds a 100% interest in the Kisladag & Efemçukuru mines located in Turkey; the Lamaque complex located in Canada; and the Olympias, Stratoni, Skouries, Perama Hill, and Sapes gold mines located in Greece.
In 2024, the company’s Lamaque Complex achieved a record production of 196,538 ounces of gold. This output contributed to Eldorado’s overall 2024 gold production of 520,293 ounces, which was a 7% year-over-year increase. In Q4 2024 alone, Lamaque produced 63,742 ounces of gold. The total cash costs at Lamaque were $615 per ounce sold in this quarter, which was a slight improvement year-over-year, fueled by increased production costs but largely offset by the higher volume of ounces sold.
The production from Lamaque, particularly the additional ore from the Ormaque bulk sample, coupled with higher throughput rates and grades, directly impacts Eldorado Gold Corp.’s (NYSE:EGO)gold sales and revenue generation. The completion of the Ormaque bulk sample in December 2024 increases confidence in the development of a second mine within the Lamaque Complex.
Overall, EGO ranks 6th on our list of the cheap hot stocks to buy right now. While we acknowledge the growth potential of EGO, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than EGO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.